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Thursday, November 27, 2003
Peso hits all-time low after FPJ declares candidacy (12:28 p.m.)
MANILA -- The Philippines peso dived to an all-time low and share prices dropped nearly two percent Thursday after a popular movie star announced he would challenge President Arroyo in polls in May next year.
The peso opened at 55.85 against the dollar, eclipsing the previous record low of 55.750 registered on January 17, 2001 when a military-backed popular revolt toppled the presidency of another Filipino movie hero, Joseph Estrada.
Action star Fernando Poe, a high school drop-out with no political experience, announced on Wednesday that he would take on Arroyo, raising the prospect that the country might be ruled again by someone whose only claim to the nation's top job is his popularity as a movie star.
Poe poses possibly the greatest threat to Arroyo, who is seeking a full six-year term after replacing the deposed Estrada in January 2001.
Lionized as a local version of late Hollywood star John Wayne and known simply as "The King" or "FPJ", Poe is also a close friend of Estrada, currently in jail on corruption charges.
Ratings agency Moody's on Wednesday placed on review for possible downgrade the Philippines' long-term foreign and local currency ceilings and ratings amid heightened political uncertainties.
The key composite index of the Philippine Stock Exchange fell 21.17 points, or 1.57 percent, to 1,323.19 as it reacted for the first time to the Poe candidacy. Wednesday was a public holiday in Manila.
"The bigger factor behind this selling is the prospect of a rating downgrade by Moody's, while (Fernando Poe's) candidacy also caused some nervousness among investors," Westlink Global Equities chairman Rommel Macapagal said of the stocks decline.
The Philippine Central Bank said it was closely monitoring the peso movement. There were no immediate indications of a market intervention.
"The peso is still reacting to political noise. The movements are not consistent with improvements in the economy. We are watching the market," central bank deputy governor Amando Tetangco said. AFP |
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