Index soars 212 pts as investors expect Estrada to go

The Philippine stock index surged to its biggest single day gain in history as bargain hunters loaded up on practically all issues, trading on high expectations of a long-awaited resolution to the political crisis that has pummeled the Estrada presidency.

The 33-company Phisix soared 212.26 points or 16.48 percent to break the 1,500 level at 1,500.10. The last time the market rose over 16 percent in a day was on July 28, 1987 at the time when there were still two stock exchanges (Manila and Makati), just as the economy was starting to hum in the early stage of the Aquino administration.

The market’s astounding pullback was also attributed to the strong recovery of the peso against the dollar, as the exchange rate ended at P48.050 to the dollar from a flat rate of P51 almost a week ago.

Analysts said the Phisix’s gain was largely expected, as bottom-picking investors and those who covered their short positions since last week made their moves. "But we did not expect it to rise this much, it happened so fast," Eagle Equities president Joey Roxas said.

He said there has been buying in all fronts, across all sectors, for different reasons. First, the anti-Estrada groups, or those who want the President to step down, feel that with the spate of political defections and the show of support in last Saturday’s rally that it would be just a matter of time before Estrada eventually quits.

On the other hand, Roxas said the pro-Estrada faction was cheering on the latest results of an SWS survey which showed a larger number of people still favoring that Estrada hold on to office, while from a neutral viewpoint, the start of the Constitutional process for the President’s impeachment, regardless of the result, signals a return to normalcy.

All sectors floated in positive territory as advancing stocks swamped losers, 99 to 8, with only six issues remaining unchanged. Value turnover ballooned to P3.840 billion, from just over P500 million last Tuesday, as foreigners dominated buying for the 14th straight day.

Leading the winners were heavyweights PLDT, Ayala Land, SM Prime, Ayala Corp., Meralco B and Benpres Holdings and a host of other blue chip foreign favorites.

The market was so bouyant the PSE even implemented the mandatory price freeze for a handful of issues whose gains topped the allowed 50-percent ceiling. These include Southeast Asia Cement, Cyberbay Holdings, i-People, PhilWeb, Dizon Copper-Silver Mines and Ever Gotesco.

Meanwhile, the decliners consisted of second liners and non-index stocks, led by Boulevard Holdings and financial issues Manulife, PS Bank and China Bank.