Stock market cheers Erap conviction

The Philippine Stock Exchange rose sharply in late trade Wednesday after the Sandiganbayan declared former President Joseph Estrada guilty of plunder. As of 11:25 a.m. the Philippine Stock Exchange composite index had gained 42.59 points or 1.30 percent at 3,310.56. The anti-graft court judged the former president “guilty beyond reasonable doubt" of plunder, and sentenced him to serve up to 40 years in prison. He, however, was cleared of perjury raps filed against him. Estrada called the decision “a political decision" by “a kangaroo court." "Yes this is a positive reaction from the market. The market is up by 40 points," 2TradeAsia managing director Grace Cerdenia said. "It removes part of the earlier political overhang on the Arroyo administration," she added. Market analyst Jose Vistan earlier said a guilty verdict on the plunder case would be best for the market. Vistan, who is head of research at AB Capital, said an acquittal would have led to a stronger opposition, which would hamper President Gloria Macapagal-Arroyo’s moves to reform the economy. - GMANews.TV