Market players dismayed over Trillanes walkout but stocks still up 1.17%
Philippine share prices rose more than one percent on Thursday, even after a mutinous faction in the military renewed calls for the ouster of President Gloria Macapagal Arroyo. Senator Antonio Trillanes IV and Brigadier Gen. Danilo Lim walked out of a Makati City courtroom on Thursday as they called upon the Filipino people to withdraw support from President Arroyo. Lim, who faces court martial proceedings in connection with a failed coup attempt last year, was to testify when the incident occurred. Lim served as a negotiator during the height of the Oakwood Mutiny, which was launched by Trillanes and the Magdalo on July 27, 2003. Amidst the political tension, the Philippine Stock Exchange composite index managed to gain 41.55 points or 1.17 percent at 3,578.55. Earlier in the day, however, the PSEi was up more than 90 points. "We're really disappointed with what has happened. The market's reaction is obviously to take cover. The situation is hard to predict but there will be panic selling," said AB Capital research head Jose Vistan. "Now aside from contending with volatility in the United States, there is also local political tension," Vistan added. Vistan expressed more dismay that the incident was able to dampen the effect of Wall Street's strong finish overnight. The Dow Jones Industrials Average surged more than 331 points, a fact that could have rejuvenated the local stock market which has been sluggish the past weeks. The Makati incident also overshadowed the government's announcement of firm economic growth in the third quarter. Earlier on Thursday, the National Economic and Development Authority announced that the economy expanded 6.6 percent in the third quarter, within earlier projections albeit slower than the second quarter's 7.5-percent leap. "This is a surprising political event and it has contributed to the air of uncertainty. The market may dive because of this. The peso may also react," First Grade Holdings managing director Astro del Castillo said. "This also will really disappoint investors," del Castillo added. However, del Castillo said tomorrow's holiday may shield the markets from further fallout from the incident. But until next week, investors will remain cautious of uncertainties created by the political tension, he said. - GMANews.TV