MANILA, 25 November — The Philippine stock market is seemingly on the mend at last and the market barometer rising over 5 percent and turnovers healthier than they had been for the past weeks.
The composite index rose 5.33 percent to 1,088.46 points, having added on 55.12 points. Although the improvement in the value turnover was minimal at 20.94 percent, the actual trading appreciated 157 percent as 4.3 billion shares changed hands.
"There was a bit of profit-taking with investors getting the jitters from the latest conflict," United Coconut Planters Bank Trust fund manager Vanessa Lim said.
The situation improved greatly the day after as stocks ended higher as bargain hunters were encouraged by recent drop in interest rates, including a further dip in T-bill rates this week. They re-emerged to pick up stocks seen offering value after selldowns in recent months.
The market improved even more as US President George W. Bush said his government would provide nearly $100 million in "security assistance" to help the administration of President Gloria Macapagal-Arroyo.
In addition, Bush said he would ask the US Congress to provide the Philippines with over $1 billion in trade benefits as well as providing guarantees for agricultural exports worth $150 million, food aid of up to $40 million and a $200-million line of credit through the US Overseas Private Investment Corp.
