MANILA, 17 June — Despite the ongoing hostage crisis in the Philippines, stock market traders chose to discount the bad news and focus on the positives.
The government’s decisive handling of the hostage drama in southern Philippines also provided some support to the market. Thus the Philippine market finished on a positive note last week. The market indicator closed at 1,479.30 points after rising nearly five percent or 68.8 points.
Market indicators offered mixed results with value turnover decreasing 30.04 percent to P3.17 billion ($62.15 million) and volume turnover rising sharply by 120.26 percent to 4.05 billion.
“The power bill is a good indication that the Arroyo administration is set to do reforms. The low interest rates is also a welcome relief as it stages the environment,” said fund manager Albert Chua of All Asia Asset Management that handles P150 million worth of funds.
“The market seems to have discounted the bad news,” he said. Philippine officials said they have received word that the Abu Sayyaf would free some hostages. However, there were no confirmed word on the fate of an American hostage whom the rebels claimed they had executed.
“Most of the gains were made by the blue chips such as PLDT, Ayala Land Inc. and San Miguel B ,” said BPI Securities investment analyst Spencer Yap. “I think its price-related. The market prices of these issues are still low compared to their year-highs, so there is still room for these issues to appreciate. We’ve been seeing foreign buying in these issues,” Yap said.
BPI Securities’ Yap said the market could be ripe for profit-taking next week. “We’re already seeing some profit taking on issues like SM Prime. If the trading pattern holds, we should see profit taking,” he said.