Stocks edge up on last minute bargain-hunting

Share prices closed mixed yesterday in listless trading, with the main market index advancing near the close of the session on bargain-hunting, traders said.

The 30-company Philippine Stock Exchange Index ended up 4.52 points, or 0.3 percent, at 1,403.39, adding to a 3.67-point gain Thursday.

Advancers and decliners both numbered 28, while 44 issues were unchanged.

The broader All Shares sub-index fell 5.78 points to 1,403.39.

Boosting the main index were blue chips Metropolitan Bank, which rose P3 to P173, and Philippine Long Distance Telephone Co., which rose P10 to P805 on bargain-hunting.

The total volume of shares traded remained thin at 176.2 million shares valued at P393.1 million, compared to 150.7 million shares valued at P574.4 million on Thursday, as most investors avoided infusing more money into the market because of concerns over the impeachment trial of President Joseph Estrada.

"Investors are out of the market and they will stay out until this crisis is over," said A&A Securities research head Astro del Castillo.

He said Christmas "will be postponed indefinitely" for the stock market unless Estrada resigns.

"I think the market will only become more active if our Christmas wish is granted, which is the resignation of the president, or, a change in leadership," he said.

Heightening the market’s concern over the impeachment trial was a decision by the defense panel to allow Estrada to take the witness stand only if there is substantial evidence against him.

Estrada has said he is willing to testify to clear his name.

Other active stocks included Fairmont Holdings, which fell two centavos to P1.04. Benpres fell five centavos to P2.65.

Dealers said the index ended in positive territory largely because of last minute buying by government-linked institutions.

"There was a spurt of last-minute buying, it’s just the usual scenario and of course government financial institutions are the usual suspects," said Manny Cruz, chief strategist at Mark Securities Corp.

Cruz said the market was lethargic as investors stayed on the sidelines amid President Joseph Estrada’s corruption trial which entered its seventh day Friday.

If Estrada is convicted in the Senate trial, he would be removed from power.

Turnover at the bourse Friday remained thin at 176.2 million shares worth 393 million pesos (7.86 million US) from 150.5 million shares worth 570 million pesos a day earlier.

San Miguel Corp B shares, which emerged as the day’s most active stock, were flat at 51 pesos. The brewer’s A shares were also flat at 48.50 pesos.

La Tondena Distillers, San Miguel’s cash cow, closed 50 centavos higher at 30 pesos after chalking up higher profits.

Manila Electric Co. B shares shed 50 centavos to 44 pesos while its A shares were unchanged at 44 pesos.