PSE INDEX UP BUT WORRIES REMAIN, ESPECIALLY ON ABRA MINING

The Philippine Stock Exchange (PSE) index was up today but worries remain on the continuing sell-down by foreign investors resulting in a below-average trade as trading saw local investors looking at bargain hunting to push a rise of 65.42 points or 1.01 percent to 6,531.21 points.

Net foreign selling amounted to P710 million on foreign buying of P1.373 billion and foreign selling of P2.083 billion with the sub-indices all in positive territory as local investors took the slack from foreign buying with the financials and the holding firms posting above one percent gains, the financials up by 1.81 percent and the holding firms, by 1.17 percent.

The other sub-indices were also up: industrials, by 0.41 percent, the services by 0.54 percent mining and oil, 0.27 percent, and the property sector, by 0.69 percent. Trading was sub-average at P4.677 with 111 gainers, 81 losers, and 55 shares unchanged.

Top traded stock Ayala Land lost another 5 centavos to close at P33.25 as foreign investors dumped P347 million of its total trade of 685 million.

SM Prime escaped being in the loss territory as local investors upped the ante as foreigners unloaded P47 million out of the total trade of P197 million as it finished the day at P35.70, up by 70 centavos.

Brokers are worried that a planned action of the Philippine Stock Exchange on the selling of unlisted and unissued shares of high-flying mining stock Abra Mining could further lead to the erosion of foreign investors' sentiment as there are whispers that the officials of Abra Mining may just be given a slap on the wrist for their violations that led to its suspension last March 4.

It has been bruited about in knowledgeable circles in the PSE that the exchange may just allow Abra Mining to proceed with the listing of the stocks that were the subject of transactions that led to its suspension.

Sources say they are baffled by the silence of PSE independent director Jose Pardo who has not been heard from ever since the Abra Mining caper came about.

Among the actions that Pardo, as an independent director, should have undertaken, was to ask when the sale of unissued and unlisted stocks of Abra, which rose by almost 300 percent during its heyday, were first perpetrated. As an independent director, Pardo is supposed to look at shenanigans in the exchange.

Industry sources said that they were perplexed by the pronouncement then of PSE president, Ramon Monzon that the exchange is looking at a possible "white knight" to salvage Abra from being delisted fully. But, he failed to say what sanctions the exchange will pursue against the erring officials of Abra.

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