Palace concerned over pullout of brokerages

The Arroyo administration expressed concern yesterday over the pullout of foreign stock brokerages which suspended operations due to the thin trading volume at the stock market.

Presidential Spokesman Rigoberto Tiglao admitted the brokerages’ pullout reflected the state of health of the local equities market but assured the people measures are being taken to restore investors’ confidence in the Philippine Stock Exchange (PSE).

While the stock market surged after President Arroyo succeeded to the presidency in January, it has since been on a downtrend because of political developments like the arrest of jailed President Joseph Estrada and the just-concluded local and congressional elections.

The stock market has also been affected by the gloomy economic outlook due to the slowdown in the US and Japan, analysts added.

The bourse went on another downtick yesterday after 20 people, including three American tourists, were kidnapped from an island resort off Puerto Princesa City, Palawan.

But, analysts said, the fundamental concern of local and foreign investors is on the structural economic reform measures that have long been pending in Congress.

One of these measures is the controversial Omnibus Power Sector Reform bill which President Arroyo wants approved in the special session of Congress that convened yesterday.