US bailout uncertainty cuts local share prices

MANILA, Philippines- Uncertainty in the approval of a US plan to shore up ailing financial institutions sent Philippine share prices on Friday tumbling, analysts said. The 30-company Philippine Stock Exchange index slipped 46.68 points or 1.7865 percent to 2,566.21 while the all-share index skidded 27.63 points or 1.6815 percent to 1,615.56. Losers dominated gainers 58 to 16 while 51 stocks were unchanged. Volume traded reached 846.56 million valued at P2.303 billion. Jose Vistan, AB Capital Securities research chief, said investors were apprehensive over the markets' behavior once the US House decides on a bailout plan which included $150 billion in tax breaks and a temporary increase in the deposits insured by the Federal Deposit Insurance Corp. to $250,000. The plan has been approved by the US Senate. "The market is conditioned that a bailout is needed to get the US out of mess. The uncertainty of the US House approval made investors cautious and take profits," he said. Vistan added that for next week, the market's behavior will be directed by the outcome of the US House vote tonight. Telecommunications giant Philippine Long Distance Telephone Co. dropped P30 or 1.1029 percent to P2,690. Andrew Tan-led holding company Alliance Global Group Inc. declined P0.40 or 10.2564 percent to P3.50. Geothermal power producer PNOC-Energy Development Corp. plunged P0.05 or 1.2346 percent to P4. Ayala-controlled Bank of the Philippine Islands plummeted P1 or 2.1053 percent to P46.50. Property giant Ayala Land Inc. dropped P0.30 or 3.1915 percent to P9.10. - GMANews.TV