RP share prices gain in third successive trading day

Philippines shares improved for a third straight day on Wednesday as financial markets welcomed news that some legislators will push for key financial reform measures at the 15th Congress of the Philippines. The market also took its cue from overnight gains On Wall Street, according to Juanis Barredo, vice president for sales of CitisecOnline Brokerage. The Philippine Stock Exchange index closed at 3,350.08 points, up by 14.37 points or 0.43 percent, with 1.61 billion shares worth P3.2 billion changing hands in the session. Winners led gainers 53 to 39, while 74 issues closed unchanged. Sen. Edgardo Angara wants the Bangko Sentral ng Pilipinas charter reformed by amending old-fashioned insolvency procedures for problematic companies and promoting mutual funds as legislative priorities in the banking and finance sector. Investors seemed to have received these legislative propositions in a "very positive" light, said Steve Sevidal, who helps manage $800 million at United Coconut Planters Bank. "The financial world has evolved dramatically in the past few years. It is time for the BSP's charter to keep in step with latest developments," he said, pointing out that there are more complex instruments today compared to the time when the BSP charter was crafted. Sevidal said the central bank should be allowed to issue long-term peso debts, enabling the regulator to "manage more properly its liabilities." At present, the Bangko Sentral is not allowed to issue long-term peso debts since there is resistance from the Bureau of Treasury, which issues fixed-rate Treasury notes. Analysts, who maintain their optimism in the new administration, said that if such legislative plans push through, the country would be in a better situation to absorb shocks from the global financial turbulence. Angara, who chairs the Senate committee on finance, said that financial reforms could "shield the country from future booms and busts." But apart from implementing these financial reforms, Banco de Oro Unibank Inc. chief market strategist Jonathan Ravelas stressed that "the government spending on basic infrastructure and social services should be vigorously supported." Still, based on fundamentals alone the Philippine market has emerged stronger that the markets in the US, Europe, and Japan, Barredo said. He noted that the overseas markets declined around 14 percent from last year’s highs, while the Philippines is about 2 percent of its rebound with the economic recovery. The main PSE index is now within the 3,330 to 3,400 resistance level that trading would like be range bound in the next two weeks unless stronger market moving news here and abroad gives it a boost, Barredo added. —VS, GMANews.TV