MANILA, 20 May — The long-drawn out counting and accompanying uncertainty after the mid-term elections last May 14 has taken its toll on the Philippine stock market which suffered a substantial loss which many see as growing every day as the results remain undecided. Immediately after the polls, a private sector election watchdog took over and the initial unofficial and partial results made many traders and investors fear that the economic policies of the administration of President Gloria Macapagal-Arroyo are in danger of being discontinued. It was therefore no surprise that the composite index slid 2.44 percent as 36.21 points were shaved off before it closed at 1,448.62 points.
Value turnover was no better as it slumped 50 percent to 1.58 billion pesos ($39.5 million). Actual trading was also down by 38.19 percent at 1.41 billion shares. “Investors (in stocks) are hesitant to put money in stocks amid the seesaw battle between the administration and the opposition for control of Congress,” said Henry Ong, vice president at KGI Securities Inc. He said “there is still a possibility that the opposition will control Congress, which may make it difficult for the government to push certain reforms.” “A lot of investors are still not convinced about market prospects ... they are looking for a big majority control (by the government of the Senate) but it does not look like it will materialize (based on early unofficial voting figures),” UCPB Trust fund manager Vanessa Lim said. “Although the elections were generally peaceful, investors want to stay on the sidelines and wait for some sort of trend and to see which grouping (pro-administration or opposition) will dominate the Senate,” KGI Securities Inc. head of sales Fitz Aclan said.
