Shares plunge another 33 pts on lack of positive news

Local stocks tumbled anew as investors' sentiment remained captive to the raging battle between government forces and Muslim extremists in Mindanao.

Moreover, the increasing number of companies being dragged in the debt problems of Urban Bank, Wincorp and ASB Realty has contributed to the market tension, triggering a sell-off even in solid index issues like San Miguel, Petron Corp. and Metrobank.

Analysts said the weaker corporate earnings and flat growth prospects for the year, along with the planned interest rate hike in the US that could induce the same reaction from local economic managers to prevent speculative attacks on the peso continue to drag down the Index.

The latest in the series of "battering rams" in the bourse, although to a lesser degree, was the "Love Bug" computer virus that left behind an estimated $10 billion in damages worldwide. The spread of the bug, believed to have been created by a Filipino hacker, made investors wary of tech stocks touting Internet solutions such as PhilWeb, Music Corp. and Island Mining.

The main index dropped 33.29 points or 2.14 percent to end at 1,518.61 yesterday, the fourth consecutive day on the downside. Volume of trades reached almost four billion shares but the value turnover was still below the P1 billion mark, a lean P828.329 million.

Losers greatly outnumbered gainers, 82 to 16, while 34 issues were unchanged. Not surprisingly, the 10 actively traded stocks during the day were blue chip and tech issues, all of which succumbed to a selldown.

Share prices of PLDT, San Miguel, Bank of Phil. Islands, Ayala Land, Benpres Holdings, Meralco and Metrobank fell, along with that of Globe Telecom, PhilWeb and Music.

Among the biggest casualties, however, were second-tier stocks such as Gotesco Land, Island Mining and Balabac Oil. On the other hand, the top gainers include EDSA Properties, Tanduay Holdings and EasyCall Communications.

In corporate developments, leading oil refiner Petron Corp. said it has filed a formal claim with the Philippine Deposit Insurance Corp. for the payment, inclusive of interest, of its P540 million fund placement with the closed Urban Bank. This amount does not include a portion of its retirement fund, placed at P673.42 million plus interest and earnings, which the oil firm is also running after.

But Petron said the combined amount is not seen to affect the company's financing condition and operations as these comprise only a small percentage of its working capital requirements and cash level. Petron joins San Miguel Corp. and Landbank whose fund placements were similarly locked in Urban Bank before the bank holiday.