Tuesday, June 28, 2005
Shares slip after Arroyo speech (3:02 p.m.)
MANILA -- Philippine stocks slipped Tuesday following President Gloria Macapagal Arroyo's nationwide address in which she admitted talking to an election official during last year's presidential race.
The selloff, however, wasn't as intense as feared, as investors displayed resilience in the face of political jitters spawned by Arroyo's admission and apology Monday night, traders said.
The benchmark 30-company Philippine Stock Exchange Index limited its loss to 8.30 points, or 0.4 percent, to finish at 1,955.20.
Decliners led gainers 46 to 24, while 42 stocks were unchanged. The index rose 0.8 percent Monday.
"There was a knee jerk reaction as some investors may have been jolted by Arroyo's statement last night," said Citiseconline.com investment analyst Mark Alan Canizares. "But I believe the country's fundamentals will reassert themselves after the political storm."
First Grade Holdings managing director Astro del Castillo said the nationwide address is being viewed by some sectors as a step toward ending the controversy.
"Hopefully, the apology will help calm the nerves of the people," said del Castillo. "But the uncertainty cannot be resolved overnight."
The continuing rise in world oil prices, which is expected to impact on the domestic economy, also was a factor, he said.
Contributing mainly to the market loss was profit-taking in property concern Ayala Land, down 3.6 percent at 8.10 pesos, its parent Ayala Corp., off 1.5 percent at P325 and investment holding company First Holdings, lower by 1.1 percent at P46.50.
Limiting the market's loss was continued buying in Philippine Long Distance Telephone Co., up 0.3 percent at P1,640.
Philippine National Bank rose 6 percent to P44.50 after the Department of Finance said Monday that businessman Lucio Tan will exercise his right of first offer on government shares in the bank.(AP)
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