MANILA, 28 April 2004 — As the stock market rebound-ed on mounting expectations that market-friendly incumbent Gloria Macapagal Arroyo will win next month’s presidential race, jailed former President Joseph Estrada and his top accuser lent their voices to prevent her victory.
Campaigning on radio since Monday, Estrada appealed to his supporters to reject Arroyo. “Let us end the regime of corruption in the country,” he said, adding he was speaking from his detention center at an army camp in Tanay, outside Manila.
In one of the major ironies in Philippine politics, Arroyo’s estranged Vice President Teofisto Guingona Jr. also called on voters to reject Arroyo, saying she was incompetent.
“Our country is just like a car, but the driver is taking us to a deep manhole because of ineffective economic policies, high prices and instability,” said Guingona, speaking in the Filipino in a 30-second radio spot.
Estrada and Guingona are both supporting the main opposition presidential candidate Fernando Poe Jr., an actor whose immense popularity has spooked the business community on account of his lack of any experience in governance.
Guingona was one of the leaders of the movement that ousted Estrada from office in January 2001. A senator at that time, Guingona accused the Estrada of amassing wealth from illegal gambling, a charged that led to his impeachment.
Although the impeachment trial was aborted, Estrada was forced to resign when military and police officials and some of his Cabinet members defected to the side of the “people power” movement.
His ouster propelled then Vice President Arroyo to Malaca?ang Palace.
Despite Estrada’s support for Poe, the front-runner for the election at the start of the year, Arroyo has clawed her way back to the top, opinion polls say. Latest polls showed Poe falling behind Arroyo by 10 points with the president at 36.9 percent support against the actor’s 26.4 percent.
Philippine shares ended sharply higher yesterday, setting a new 3-year closing high, as a result of Arroyo’s improving poll ratings. Expectations of strong first-quarter corporate earnings also bolstered market sentiment, traders said.
The 30-company Philippine Stock Exchange Index finished up 25.03 points, or 1.6 percent, at 1,596.93, its best close since March 7, 2001, when it ended at 1,603.85. On Monday, the index lost 1.1 percent.
“I guess it all boils down to politics,” AB Capital Securities economist Jose Vistan told Dow Jones Newswires. “The concerns about the Philippine political situation have turned around ever since surveys have shown (Arroyo) is leading.”
Vistan said the market has shown its preference for someone capable of ensuring continuity in reforms, and Arroyo, with her expertise in finance and economics, had shown she fits the bill.
“What’s happening is that these (political) developments have caused a snowballing effect," he said.
Money rates have gone down, and the dollar is below the 55.60-peso level. The lower interest rates and stronger peso are helping the market move higher. This is a positive cycle,” Vistan said.
