Share prices closed higher yesterday led by mining and oil-related companies following a jump in commodity prices, while telecom stocks retreated after recent gains.
Investors were cautious ahead of a three-day weekend. In contrast, major Asian markets posted solid gains on upbeat corporate earnings and expectations that the Federal Reserve will again cut its key rate when it meets next week.
President Arroyo’s decision late Thursday to pardon convicted former leader Joseph Estrada earned cheers and jeers, but most investors took on a wait-and-see stance.
“Investors are still gauging the nation’s sentiment following the presidential pardon for Estrada,” said Astro del Castillo, managing director at fund manager First Grade Holdings.
At the close, the composite index was up 17.10 points or 0.5 percent at 3,784.88, after moving between 3,769.31 and 3,787.24.
It fell 0.9 percent from last week.
Philippine markets will be closed on Monday for village elections nationwide. Trading will resume on Tuesday and Wednesday, but the market will be closed again on Thursday and Friday for the All Saints Day and All Souls Day holidays.
The all-share index advanced 8.20 points or 0.4 percent to 2,348.53. There were 69 advancers and 44 decliners, while 55 stocks were steady.
A total of 3.7 billion shares worth P4.5 billion changed hands. President Arroyo’s decision disappointed investors who want the government to seriously tackle the problem of corruption, Del Castillo said.
“Hopefully the decision will not erase gains in the economy and affect investor confidence,” he said.
Despite continued economic growth under her leadership, Mrs. Arroyo remains deeply unpopular as allegations of corruption and human rights violations hound her administration, in addition to accusations that she cheated in the 2004 presidential elections.
“While (the Estrada pardon) will always remain an emotional issue for some, we believe that the market as a whole will treat it as it has treated recent political issues — with indifference,” said Francisco Liboro, president of PCCI Securities. “We see investors sticking to the main issues of corporate earnings and economic growth.”
Profit-taking hit index heavyweight Philippine Long Distance Telephone Co. (PLDT) and rival Globe Telecom Inc. PLDT was down P5 or 0.2 percent at P3,070, while Globe retreated P15 or 0.9 percent to P1,720. — Technistock