Thursday, March 01, 2007
Philippine shares surge as market recovers from sell-off (1:15 p.m.)
MANILA -- Philippine shares rebounded Thursday, a day after suffering from a heavy sell-off triggered by losses in China and the US.
The benchmark 30-company Philippine Stock Exchange Index rose 122.67 points, or four percent, to 3,190.12, after tumbling 7.9 percent in the biggest single-day drop since 1997, at the height of the Asian financial crisis.
"The panic is over," said Ismael Guerrero Cruz, president of IGC Securities Inc.
"Overall, the market is still OK. The positive fundamentals that supported it before the sell-off are still present," said Chelsea Dipasupil, manager for securities and stock market at RCBC Securities. "We have the improving fiscal position of the government, the strengthening of the peso, and low interest rates."
President Gloria Macapagal Arroyo sought to ease any fears of more turmoil, saying "our fundamentals are rooted well and spread over a wide range and cannot be overcome easily in a single sweep."
"And we also have to take into consideration the resiliency of the whole region, including China, in making a rapid comeback from the most recent drop in the bourse," she said in a statement.
"East Asia is a dynamo of growth and will continue to be a leader in trade, security and economic consolidation," Arroyo said.
Philippine Long Distance Telephone Co. was the most actively traded stock, up 4.3 percent at P2,420, after giving up nine percent Wednesday. PLDT also took its cue from the 3.3 percent gain posted by its American depositary receipts in New York Wednesday.
Advancers led decliners 105 to 22, while 45 stocks were unchanged.(AP)
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