PLDT investments sign of global confidence in RP

The unprecedented avalanche of foreign investments in telecommunications giant Philippine Long Distance Telephone Co. (PLDT) indicates the confidence of global investors in the Philippine economy despite the country’s political problems, a lawmaker said yesterday.

"The massive foreign buying of shares in PLDT is definitely most welcome. After all, it has been said that the telecommunications company serves as a proxy for the Philippine economy," Cebu City Rep. Eduardo Gullas said.

Gullas, who once served as House majority leader, said the build-up of large and independent global institutional and mutual fund investments in PLDT is an indication that the country is on the right track.

"We are not dealing here with hot or speculative foreign money. But global institutions and mutual funds that seek long-term capital growth and are restricted from quickly turning around and making fast trades," he said.

Gullas added that this clearly demonstrates that "foreign investors perceive our economy to be fundamentally strong and resilient, regardless of the persistent domestic political discord."

Citing filings with and reports to the New York Stock Exchange (NYSE), Gullas noted that at least 30 large foreign investors — 15 institutions and 15 mutual funds — acquired a total of 26.6 million PLDT shares worth P48.3 billion in the second semester of 2005.

Together, the 30 foreign institutions and mutual funds reported buying in excess of 15 percent of PLDT’s 172-million outstanding common shares.

PLDT’s American Depositary Receipts, which represent shares, are publicly traded on the NYSE.

Fidelity Management and Research Co. bought the largest number of shares at 7,969,300; followed by Wellington Management Co. (3,737,161); Emerging Markets Management LLC (1,202,300); and Deutsche Bank AG (1,114,800).