Tuesday, October 18, 2005
RP shares end flat ahead of court ruling on VAT law (2:22 p.m.)
MANILA -- Philippine shares ended little changed Tuesday, as investors stayed on the sidelines ahead of a Supreme Court ruling on the legality of the government's expanded value added tax law.
The benchmark 30-company Philippine Stock Exchange Index fell 0.13 points, or 0.01 percent, at 1,947.33, after giving up 0.3 percent Monday.
If the court upholds its earlier decision declaring the tax measure constitutional, it will enable the government to finally implement the law - the centerpiece of its fiscal reform program - after it was suspended by the court in July.
"It's going to be a welcome development if the law can finally be implemented," said Westlink Global Equities Chairman Rommel Macapagal.
Local brokerage house 2TradeAsia said the cautious market tone stems from fears further delays in the implementation of the expanded VAT law could undermine the country's chances of obtaining a credit rating upgrade that should help ease borrowing costs.
Contributing mainly to the slight decline in the index was profit taking in blue chips First Philippine Holdings, which lost 4.6 percent to close at P42, and Globe Telecom, off 0.7 percent at P725.
Gains in Jollibee, which rose 2.9 percent to P35.50, helped limit the market fall.
JG Summit was up 2.5 percent at P4.05 on continued investor interest in the stock after the Philippine holding group of tycoon John Gokongwei earlier this month made an offer to buy the remaining 70 percent of United Industrial Corp.
JG Summit unit Robinsons Land rose 5.3 percent to P6 following the property concern's plan to adopt a new dividend policy and to pursue a private placement of shares to improve the stock's liquidity. (AP) |
