Gov't scrambles to keep bourse open

President Estrada's economic advisers scrambled last night to keep the stock market open.

Finance Secretary Jose Pardo, who met at the Bangko Sentral ng Pilipinas with BSP Governor Rafael Buenaventura, announced last night that the stock exchange would open today after he appealed to the five-member board of the Securities and Exchange Commission (SEC).

Minutes later, SEC Chairman Perfecto Yasay Jr. appeared in a television interview and contradicted Pardo, saying the stock market would open only if all the members of the Philippine Stock Exchange's Compliance and Surveillance Group led by PSE vice president Ruben Almadro would not quit.

If the PSE wants trading to continue today, Yasay said, PSE president Jose Luis Yulo Jr. must reject the resignation of Almadro and his group's members.

"It will be up to the PSE," Yasay said. "The condition is very easy to comply with... Why will you let somebody resign who is doing a good job?"

If Almadro's group leaves, Yasay said, "the investors will be left totally unprotected during the trading hours and we will not allow that."

Asked about Pardo's announcement that trading would go on today, Yasay commented, "Other members of the commission could overrule me. But as far as I'm concerned, the suspension order stays."

Pardo, acting on President Estrada's preference to keep the market open, said suspending trading indefinitely will have dire consequences for the economy.

"Suspending should not even be considered. It would have an adverse impact on the economy and even on the foreign exchange itself," Pardo said.

He pointed out that while "we respect the independence of the SEC, we have appealed to the chairman and the SEC (members) to see their way clear not to rush a closure of the trading today. I am certain it will open tomorrow."

Yulo assured Pardo he has not accepted the resignation of Almadro's group, which means trading will continue today.

The President and Pardo emphasized that they respected the SEC's independence but said there was a great need to keep trading open. -- With Rocel Felix