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THE peso and local share prices fell on Tuesday due
to concerns over possible unrest stemming from the impending verdict
of deposed President Joseph Estrada.
Dealers said continuing concerns
over the shaky outlook for the US economy also weighed down on the
stock market.
The composite index ended down
13.11 points at 3,267.97 on volume of 2.9 billion shares worth P3.7
billion. There were 83 decliners and 30 advancers, while 51 stocks
were flat.
This was its worst finish in two
weeks but it was still off the day’s low of 3,258.09. The
all-share index fell 11.93 points, or 0.6 percent, to 2,067.86.
At the Philippine Dealing System,
the peso slumped to 47.12 to a dollar, confounding traders who were
expecting the Bangko Sentral ng Pilipinas (BSP) to lend its support
to the local currency as it did in the past. This was a steep fall
from Monday’s closing price of 46.70 to the greenback.
“The political tension is
causing some nervousness, and unfortunately we also have to contend
with external concerns,” said Jose Vistan of AB Capital
Securities.
The Philippine military on
Tuesday went on high alert to thwart violence that could explode
when the court hands down its verdict on Estrada, who is facing
charges of illegally amassing $80 million from tax kickbacks and
bribes from illegal gambling operators when he was still president.
Despite his ouster through a
military-backed popular uprising in 2001, the former movie actor
still enjoys the support of many poor Filipinos, while his successor
Gloria Macapagal-Arroyo suffers from low popularity ratings.
Estrada said Tuesday he is
prepared to spend the rest of his life in jail if found guilty,
ruling out the possibility that he will seek presidential pardon.
“Investors will remain on full
alert for any sign of turmoil both on the domestic political front
and on the international financial markets,” Vistan said.
Jose Luis Romero-Salas, president
of La Camara, said, Spanish businessmen are unfazed by the imminent
ruling on Estrada, adding more companies plan to set up in the
Philippines.
“Spanish companies are now
looking beyond the policies in the country. They are seeing the
Philippine economy stabilizing and posting real growth,” he said.
The five companies that plan to
set up shop in the Philippines are leading wine producers Bodegas.
Latue-Coop, San Isidro, Bodegas Navarro Lopez, Jesus del Perdon-Bodegas
Yuntero, and Sandevid, as well as shoe manufacturer Calzadoz Mister.
--AFP, Maricel E. Burgonio and Katrina Mennen A. Valdez
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