GSIS defends stock mart transactions

All stock market transactions of the Government Service Insurance System (GSIS) are aboveboard. This was stressed by GSIS executive vice president and chief operating officer Reynaldo P. Palmiery in belying reports that the GSIS manipulated stock prices last Nov. 6 to "make it appear that there was a revival of confidence in the Philippines."

Palmiery issued the statement in the wake of the pronouncement of Misamis Oriental Rep. Oscar Moreno that the minority members of the House will file a resolution to investigate reports that the two main pension funds are guilty of stock price manipulation.

In responding to the allegation, Palmiery said the GSIS has never manipulated market stock prices. In the case of the perceived "sudden market boost" last Nov. 6, out of the P3.8 billion transacted by the Philippine Stock Exchange, the GSIS’ trading transactions amounted to only P106.62 million which comprised a mere 2.80 percent of the total value turnover.

The GSIS was, in fact, a net seller in the market. Out of its P106.62-million trading transactions, P91.36-million worth of stocks were sales and only P15.26 million were purchases.

The GSIS considered the rally as an opportunity for it to sell in order to realize significant trading gains from some of its stocks and a chance to pick up low prices prevailing in other stocks.

Palmiery also dismissed suspicions that the GSIS allowed its funds to be used to "make it appear that foreign brokers are coming in." He said the Nov. 6 transactions were coursed through 37 brokers, consisting mainly of local brokers. Of the GSIS’ total trading transactions of P106.62 million, P87.84 million was coursed through local stock brokers and only P18.78 million through foreign brokers.