Stocks up 1.2% as players applaud Erap conviction

Philippine stocks soared on Wednesday, as the market cheered the Sandiganbayan decision declaring former President Joseph Estrada guilty of plunder. 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." The Philippine Stock Exchange composite index gained 39.63 points or 1.21 percent at 3,307.60. Advancers beat decliners 94 to 18 while 43 stocks were unchanged. Volume traded reached 3.20 billion valued at P5.06 billion. “The market reacted positively (to the decision). Considering that we’ve been down for the past days…. This is one big thorn off our backs," First Grade Holdings managing director Astro del Castillo said. "The market heaved a sigh of relief on peaceful issuance of the verdict," said Jonathan Ravelas, chief market strategist of Banco de Oro. Ravelas, however, noted that the rise was also influenced by Wall Street's overnight gain of 180 points. 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. Market heavyweight Philippine Long Distance Telephone Co. gained P10 or 0.37 percent at P2,680. Biodiesel manufacturer Chemrez Technologies rose P0.15 or 3.61 percent to P4.30. Globe Telecom added P5 or 0.38 percent at P1,320. Bank of the Philippine Islands gained P0.5 or 0.8 percent at P63. - GMANews.TV