MARKET UPDATE

Bearish news on all major market drivers: 1) weak 2Q2000 corporate earnings release, 2) the drop in US and Asian equity markets, 3) the peso's steady decline, and 4) an indicatively large flows of foreign sell orders on major
blue-chip issues. All shares index outpaced the Phisix as it dropped 1.6%! Market fears intensified on worsening investment climate outlook which imprints a view that the index can easily go lower than our recent market bottom set last May (1376) - a nearterm benchmark for market sentiment after the release of disappointing 1Q2000 corporate performance. Lack of investment market confidence are clearly pushing sellers to be more aggressive as buyers continue to remain selective and unassuming.

The peso weakened to Php45.075/USD during the morning trade session from Friday's close at Php44.86/USD.

The observed growing fears from last week's increased trade activity as share prices further dip. Trade value turnover increased to Php1.373b but with transaction crosses of Php885m on EPHI and Php79.6m for DMCP. Excluding EPHI
and DMCP transaction, net trade turnover is effectively Php408.4m which clearly keeps bargain-hunters sidelined on expectation of likely further price weakness despite attractive valuations.

The Phisix trended lower at its intraday range of +132pts / -23.38pts. Key indices were mostly lower with only the oil index staying unchanged. Decliners continue to swamp gainers 65:19 with 32 unchanged stocks. Trade focus (most active stocks) were on EPHI, TEL, DMCP, SMCB, MBT, and MERB. EPHI accounted for total market turnover on trade crosses related to its acquisition of a 23% stake in KSA Realty Corporation. The effective foreign investor sell-off on key
blue-chip issues continues as there were mere 4 gainers, 19 decliners and 10 unchanged stocks. Index-linked heavyweights that gained were MBT, BPC, ICT and LND which were largely attributed to domestic buying. Decliners were TEL, AC, EBC, ALI, MER, MERB, SMC and SMCB. Top percentage decliners among active index-linked stocks were TEL (-2.9%), EBC (-2.9%), MERB (-2.5%) and BPI (-2.2%).

PRICE SCAN: TEL - 3rd consecutive gap down today (690/680); low at 660 is a 5.5yr low
                              BPI - low at 65.5 is a new 22month low
                              WEB - low at 0.0975 is a 25week low
                              PLTL - new record low set at 0.88
                              GEI - 7week low set at 0.37

The PSE lifted the likely trade suspension warning on MRC, SINO and PMT on
compliance of PSE reportorial requirements and settlement of penalty fees.

LATE NEWS: TBill Auction Results: 91day - up at 8.925% from 8.919%
182day- unchanged at 10.0%
364day - up at 11.176% from 11.01%

Noticeable foreign selling on select index heavyweights and expectations of a likely disappointing 2Q2000 profit results on PLDT and Meralco further dragged the index lower. A slew of bearish factors gave investors certainty of index going south: a) the resurgence of the peso's weakness from yesterday afternoon's mild recovery further continues with peso dropping to Php44.99/USD from yesterday's close at Php44.875/USD, and b) reeling regional market weakness continues with HSI down 1.9% at midday.

Increased trade activity as share prices further dip confirms investor's lingering fears. Trade value turnover increased to Php713.264m from Php590.574m yesterday. The Phisix opened 3.6pts lower and fell to as much as 18.73pts or 1.29% before staging a mild recovery toward the session's end. Key indices were mostly lower with only the mining index staying positive. Decliners continue to swamp gainers 27:42 with 38 unchanged stocks. Trade focus
(most active stocks) were on PNB, TEL, MBT, and ABSP which altogether accountedfor 58.7% of total market turnover. PNB and TEL accounted for 29.1% and 16.3%, respectively, of total market turnover.

Foreign selling on PNB took centerstage with ING as net seller and accounted for 81% of today's transaction. Market speculation points to the disgruntled Templeton Asset Management as the likely seller. With Templeton holding a 12%
stake, local players joined the sell-down on expectation that PNB's share price may dive further as the sell-down may take several weeks to complete.

Sell-off pressure among index-linked issues marginally eased from yesterday's surprising no gainers as there 4 gainers, 15 decliners and 14 unchanged stocks. Index-linked heavyweights that gained were AC, SMPH, ABS and MEG. Decliners were TEL, PNB, ALI, MERB and MBT. Top percentage decliners among active index-linked stocks were PNB (19.3%) and TEL (2.8%).

PRICE SCAN: PNB - gap down on open at 59.50/59.0
                              TEL - 2nd consecutive gap down today (710/700); low at 685 is a 47day low
                              BPI - low at 66.5 is a new 22month low
                              MBT - low at 161 is a new 22month low
                              ICT - record low set at 1.08 since the IPO week in 1992 with 1.03 as the all-time low
                              FLI - gap down at 1.60/1.56 on open with its intraday low at 1.52 at a 39day low

Imperial Resources Inc. (IMP) announced its first venture into information technology with itsh acquisition of a majority stake in Web Link Phils. Inc. via a share swap. Web Link is a noted pioneer in IT based in Davao City but has since expanded to include key major cities including Manila.

The PSE announced that Belle Corporation complied settled its penalties with PSE and will therefore not be suspended on Monday.

Business news reports cited Benpres Corporation for its planned US$700m fund raising program for its mobile, toll road, power generation and water distribution expansion plans over the next two years.

Philweb Inc. (WEB) reported that 260 participants attended its first ever E-business symposium. Highlight of Philweb's business symposium was the signing of a 10,000 computer unit supply agreement with IBM Philippines. The computers
are intended for the 1,450 internet cafe sites that is due to be established nationwide.

Weaker peso, a slumping regional market performance and increased domestic ecopolitical worries resulted to another wave of a broad sell-off as none of the index-linked stocks posted a gain. Investor anxiety over domestic worries towards higher inflation, economic recession potential and a seemingly poor corporate profit outlook for 2H2000 are pushing investible funds away from the equity market.

The peso exchange rate soared anew to a high of Php45.12/USD in morning trade despite the Central Bank's comment of a likely intervention.

Trade activity reflected investor fears as turnover increased (at Php590.574m from Php479.275m yesterday) as prices trended lower. The Phisix stayed on negative territory dropping by as much as 32.95pts ir 2.23%. Key indices were
mostly lower with only the oil index reflecting a minor gain. Sell-off was apparent as there were merely 10 gainers against 74 decliners and 31 unchanged stocks. Trade focus (most active stocks) were on TEL, BPI, BPC, SLC, MBT,
ABSP, AC and SMCB which altogether accounted for 54.9% of total market turnover. TEL and BPI accounted for 9.83% and 9.7%, respectively, of total market turnover.

Index-linked issues were heavily sold down as there were no gainers, 22 decliners and 11 unchanged stocks. Index-linked heavyweights that heavily pulled down the index were TEL, ALI, AC, ABS, SMPH, EBC, and BPC. Top percentage decliners among index-linked stocks were: DGTL (-7%), FDC (-6%), AEV (-5%), FLI
(-4.8%) and MEG (-3.5%).

PRICE SCAN: TEL - gap down today (720/735); low at 700 is a 46day low
                              ALI - gap down today (5.40/5.50); low at 5.20 is a 37day low
                              BPC - low at 3.95 is a 31day low
                              BPI - low at 67 is a 22month low
                              MBT - low at 164 is a 22month low
                              AEV - low at 1.46 is a 16month low
                             MEG - low at 0.82 is a 29day low on a 13day downtrend
                              ABSP - gap down today (47.0/47.5)price downturn now on a 30day low at 45

Underlying bearish sentiment kept share prices lower despite overnight gains posted in Wall Street 0.14%) and Nasdaq (1.21%). Yesterday's 3.4% oil pump price hike and a new wave of regional currency weakness which pushed the peso
exchange rate to a high of Php45.0575/USD in morning trade worsened investors fears.

Trade activity marginally improved to Php479.275m from yesterday's alarming trade of Php341.009m. The Phisix trended lower with today's range at +3.29pts / -5.99pts. Key indices were mixed as oil and mining shares gained while the C-I's, finance and property indices headed lower. The market had with 38 gainers, 35 decliners and 47 unchanged stocks. Trade focus (most active stocks) were on ION, MBT, SLC, ABSP, SMCB, TEL, SMC, and MUSX which altogether
accounted for 59.3% of total market turnover. ION and MBT accounted for 12.3% and 8.2%, respectively, of total market turnover.

Positioning interest among index-linked issues were narrower as there were 7 gainers, 7 decliners and 19 unchanged stocks. Index-linked heavyweights that declined were AC, TEL, MBT, SMPH, ABS, BPC and BEL. Gainers include TEL, FDC, ION, EBC, MER, LTDI and DMC.

Net foreign selling were observed on MERB, SMPH, MBT, TEL, and ABSP. Investor's focus among secondliners were on MUSX, EBC, ION and BW.

EDSA Properties Holdings Inc. (EPHI) informed the exchange that it passed the following resolution subject to shareholders approval:

1. AUTHORIZE THE ACQUISITION OF THE EQUITY AND ADVANCES OF KUOK PHILIPPINE
PROPERTIES, INC. ("KPP") IN KSA REALTY CORPORATION (KSA) REPRESENTING
23.52% OF KSA ISSUED AND OUTSTANDING CAPITAL STOCK IN EXCHANGE FOR SHARES
TO BE ISSUED FROM THE INCREASE IN ITS AUTHORIZED CAPITAL STOCK UNDER TERMS
AND CONDITIONS REASONABLE AND IN THE BEST INTEREST OF THE CORPORATION.

2. AUTHORIZE THE AMENDMENT OF THE ARTICLES OF INCORPORATION TO REFLECT THE
INCREASE IN AUTHORIZED CAPITAL STOCK FROM P2,050,000,000.00 UP TO
P4,500,000,000.00 WITH A PAR VALUE OF P1.00 PER SHARE AND OUT OF SUCH
INCREASE, TO ISSUE SHARES TO KPP IN EXCHANGE FOR THE LATTER'S EQUITY IN
KSA; DENIAL OF SHAREHOLDERS' PRE-EMPTIVE RIGHTS; AND INCREASE IN THE NUMBER
OF DIRECTORS FROM 10 TO 11.

Kuok Philippine Properties, Inc. (KPP) informed the PSE that its Board passed the following resolutions:

1) AUTHORIZE THE SALE AND/OR TRANSFER OF KPP'S EQUITY IN EDSA
PROPERTIES HOLDINGS, INC. TO A CONTROLLED SUBSIDIARY UNDER
TERMS AND CONDITIONS REASONABLE AND IN THE BEST INTEREST OF
THE CORPORATION

2) AUTHORIZE THE ASSIGNMENT OF ITS EQUITY AND SHAREHOLDERS
ADVANCES IN KSA REALTY CORPORATION TO ITS AFFILIATE, EDSA
PROPERTIES HOLDINGS, INC. (EPHI), IN EXCHANGE FOR SHARES TO
BE ISSUED FROM THE INCREASED CAPITAL STOCK OF EPHI AT A
PURCHASE PRICE TO BE AGREED UPON BY THE PARTIES

3) AUTHORIZE THE SALE OF OTHER ASSETS IN MACTAN, CEBU AND
THE EQUITY OF ITS WHOLLY-OWNED SUBSIDIARY, KPPI MANAGEMENT
AND SERVICES CORP., IN TAISHAN INSURANCE BROKERS PHILS., INC.
AND KRM REINSURANCE BROKERS PHILS., INC.

PRICE SCAN: ION - reached a 5month high at 14.50
                             PCOR - on a 4day consecutive upmove from 1.18 to 1.30
                            TEL - decline to 735 is a 34day low
                            EBC - uptick continues for a 13day uptrend, setting a 28day high at Php52.50
                            ABS - on a 12day trend decline to set a 27day record low
                   ABSP - price downturn now on a 10day trend at Php47.50

Trade activity was alarmingly low at Php341.009m. The President's State of the Nation Address (SONA) delivered yesterday offers no major brightspot that will trigger investors to aggressively reposition their holdings.

The market decline in Wall Street (-0.45%) and Nasdaq (-2.76%) overnight, and a parallel weakness in key Asian markets (Hang Seng -0.5% by midday) further kept bargain-hunters selectively sidelined.

The peso marginally declined anew at Php44.68/US$ during the morning trade session from yesterday's close at Php44.60/US$. The Executive Department proposed an 11.6% hike in budget at Php725b budget for 2001 with the peso dollar exchange rate pegged at Php42/US$ and an interest rate range of 8.9% to 9.9%. So far, the SONA points to a bias by government managers to keep key interest rates stable and the peso to slightly recover.

The Phisix narrowly traded at +3.8pts / -4.4pts. Breadth of the market improved with 35 gainers, 36 decliners and 44 unchanged stocks. Trade focus (most active stocks) were on MBT, AC, MFC, ABSP, SLC, TEL, BW, and JFCW which
altogether accounted for 57.2% of total market turnover. MBT and AC accounted for 14.4% and 8.02%, respectively, of total market turnover.

Selective buying was noted among index-linked issues as there were 13 gainers, 10 decliners and 10 unchanged stocks. Index-linked heavyweights that gained were EBC, AC, TEL, MERB, SMCB, and MBT. Decliners were SMC, TEL, ABS, FDC and JGS.

The PSE lifted its suspension notice on Wellex Industries (WIN) and Unioil Resources and Holding Inc. (UNI) after both complied with the reportorial requirements and paid the basic fines.

Vulcan Industrial and Mining Corporation (VUL) informed the PSE that the Company and Anglo Phil. Holdings Corp signed a memo of agreement with PNOC-Exploration Drilling Corporation that it settled it existing conflicts.
PNOC-EDC has an option to increase it participating interest to 75% in the Central Luzon Petroleum concession. PNOC-EDC will also provide drilling rigs for Victoria 3well in exchange for a 35% interest in GSEC No. 75. (Vulcan was up 40% to Php0.33)

PRICE SCAN: EBC - uptick continues for a 12day uptrend, setting a 27day high at Php52.0
ABSP - price downturn now on a 10day trend at Php47.50

Trade activity was significanly low at Php495.96m (down 48% from Friday's turnover) as investors expectedly held back trade action to reasses President J. Estrada's state of the nation address (SONA) this afternoon. The market decline in Wall Street (-1.02%) and Nasdaq (-2.2%), and a parallel weakness in key Asian markets (Hang Seng -0.5% by midday) kept the prevailing bearish sentiment intact.

The peso narrowly moved lower at Php44.51/US$ during the morning trade session from Friday's close at Php44.40/US$. The Central Bank reported that the country's balance of payment surplus for the first four months amounting to US$803m exceeded its target at US$420m. Budget Secretary B. Diokno also reported that the budget deficit will likely be adjusted accordingly to Php85b from its programmed deficit of Php62.5m. Focus now keenly shifts on the SONA for indicative adjustments on the country's fiscal and monetary thrusts which could provide direction on key interest rates and foreign exchange.

The Phisix narrowly ranged at +2.42pts / -9.71pts. Breadth of the market remain weak with 24 gainers, 48 decliners and 42 unchanged stocks. Trade focus (most active stocks) were on TEL, SMCB, MBT, SLC, JFCW, MERB, BPI, and AC which altogether accounted for 72.4% of total market turnover. SMCB and TEL were again the most active issue for an intriguing fourth consecutive trade session accounting for 28.4% and 14.02%, respectively, of total market turnover.

Selling pressure was more extensive among index-linked issues as there were 5 gainers, 18 decliners and 10 unchanged stocks. Index-linked heavyweights that declined were AC, TEL, SMC, JGS, MER, ABS and PCOR. Gainers include SMPH, EBC, PNB, ION and CMP.

Net foreign selling were observed on TEL, MERB, JFCW, and BPI. Domestic small cap interest were on GEI (up Php0.04 to Php0.58), MUSX (up Php0.1 to Php5.30) and ION (up Php0.50 to Php12.50). Market speculation on GEI points to a
potential backdoor listing of an IT firm or a substantial equity investment in a new technology firm. Local investors joined a speculative play on Music Corp. as foreign broker buying emerged anew led by Merril, Wicarr and SG. Ionics
continues to be one of local favorite given its Philips contract and its ongoing negotiation with a foreign partner for a mould manufacturing plant which will complement its CDW order. Ionic's listed subsidiary in Singapore - ION EMS
gained anew in morning trade to Sing$0.61or Php15.50/share.

The PSE lifted its suspension notice on Atlas Consolidated Mining andDevelopment Corporation (AT) and Medco Holdings (MED) given its settlement of fines imposed.

The PSE issued a suspension on Philippine National Construction Corporation (PNCC) given its non-compliance with the structural reportorial requirements.

The PSE lifted its suspension notice on CMP Homes (CMP) after it submitted its FY1999 and 1Q2000 financial statements.

PRICE SCAN: SMPH - share price recovered after a 6day decline to close at Php5.0
                              EBC - on an 11day uptrend to set a 26day high at Php50.0
                              ICT - dropped to an 8yr low at 1.12 before closing unchanged at 1.16
                             MPC - on a 7day trend decline at 0.62

Sell-offs continued on fears of a renewed wave of foreign selling after well known Asian fund manager Dr. Mark Mobius of Templeton Asset Management boldy reported its strong disatisfaction over the PNB bidding and has tagged the Philippines as a risky investment option.

The country's economic superbody - Economic Coordinating Council (ECC) is set to review the country's budget program next month given key indicators of a ballooning budget deficit. The ECC Secretary General identified the slow growth of the economy, the delay in privatization, shorfall in tax collection, the weaker peso and the Mindanao crisis as the key factors which threatens the budget deficit to reach Php100b. The investment market is therefore anticipating a possible hike in key domestic interest rates.

Overnight gain in Wall Street (+1.8%) and a similar gain in regional markets (Hang Seng +1.86% by midday) failed to perk local investor interest. The peso narrowly moved lower to Php44.51/US$ during the morning trade session from
yesterday's close at Php44.585/US$.

The downturn of Phisix continued with today's range at +0.41pts / -14.77pts. Breadth of the market however improved as there were 43 gainers, 44 decliners and 44 unchanged stocks. Selective buying interest emerged to curtail the broad market sell-off evident in the past day's trading session. Trade activity increased anew to Php952.982m, up 14.44% from Php832.72m. Trade focus (most active stocks) were on TEL, SMCB, MBT, MERB, ABSP, and AC which altogether accounted for 69.1% of total market turnover. SMCB and TEL were again the most active issue for a surprising third consecutive day accounting for 19.7% and 14.5%, respectively, of total market turnover.

Sell-offs were tapered-off as there were 10 gainers, 14 decliners and 9 unchanged stocks. Index-linked heavyweights that declined were TEL, SMC, SMPH, ALI, MBT, MER, SMCB and MEG. Gainers include EBC, PCOR, ABS, JFC and BPC.

The PSE listed today Macroasia Warrants (MACW). MACW was the best gainer as it traded at a range of Php0.20 to Php0.70 from its issue price at Php0.10. MACW closed at Php0.44.

The PSE announced that Basic Holdings (BH) has fulfilled its reportorial requirement and therefore trading on the stock will not be suspended in August.

PRICE SCAN: MBT - downtrend still continues to another new 20-month low at 165
SMPH - dropped to a new 6.5week low at 4.85
MERB - on an 9day trend decline with intraday low at 59.0

Worsening investor confidence and overnight losses in Wall street resulted to broad-market sell-offs. Underlying weakness from the ecopolitical front intensified further on news that urban terrorsim is the next move from MILF
terrorists which drew military authorities on alert to guard key public utilities including public transport systems, oil depots, power plants, telecom centers, etc.. The resulting PNB auction with Lucio Tan as the sole-bidder also
triggered market speculations of foreign investors disappointment led by PNB's minority holder - Templeton Asset Management to direct a broad sell order in its exposure in the country.

Increasing belief of NG's dire incapacity to control its ballooning budget deficit continued to support speculations of an interest rate hike.

Although regional currencies were relatively stable ahead of the speech of US Fed Chief A. Greenspan tonight, foreign selling in the stock market may increase near-term demand for US dollars. The peso narrowly moved lower to Php44.56/US$ during the morning trade session from yesterday's close at Php44.51/US$.

The Phisix kept its downtrend momentum, opening lower by 2pts and extending the drop by 34.78pts before a short rally towards the session's end. The notable broad market sell-off resulted to increased trade activity with trade
value turnover at Php832.72m, 38% higher than Php602.87m yesterday. There were 10 gainers, 96 decliners and 40 unchanged issues. Trade focus (most active stocks) were on TEL, SMCB, MBT, ABSP, and EBC which altogether accounted for 41% of total market turnover. TEL and SMCB were again the most active issue for a second consecutive day accounting for 18.5% and 7.4%, respectively, of total market turnover.

Index-linked stocks breadth had 1 gainer, 24 decliners and 8 unchanged issues. Index-linked heavyweights that declined were SMPH, ALI, MBT, PNB, ABS, PCOR, BPC and MERB. Only Ionics gained among index-linked stocks.

PSE announced that Pacific Cement Corporation (PCC) has changed its name to Pacific Holdings Inc. and its new trading symbol starting tomorrow is PHI.

Ayala Corporation announced that it is currently in talks with Hormel Foods Inc. of US for a possible investment in Purefoods Corporation (PFC). (AC was unchanged at 6.60)

NG's asset sale to curtail increased budget deficit now shifts focus on PNCC with First Philippine Holdings (FPH), the Gatchalian group, and Crown Equities Inc. (CEI) as prospective bidders. (PNC was up 10% at Php9.0; FPH was down
Php0.50 at 21.75; CEI was down Php0.02 at Php0.45)

PRICE SCAN: MBT - downtrend continues to another new 20-month low at 169
ABSP - on an 9day consecutive downmove at 47.50
SMPH - dropped to a 6.5week low at 4.90
BPC - on a 5day consecutive decline from 4.65 with an intraday low at 4.05
FLI - on a 7thday consecutive drop to record a 6week record price low at 1.68
MERB - on an 8day trend decline with intraday low at 60.0

Overhang from deteriorating economic fundamentals, the weakness in overseas markets and the lack of optimism ahead of 2Q2000 corporate earnings reports by end-June resulted to further market sell-offs.

Mid-morning forex trading news of CB's sale of dollars to increase liquidity and the resulting gain of the peso to Php44.40/US$ from yesterday's close at Php44.54/US$ was not enough to deter investors broad selling.

The downward bias of the Phisix continued at its range of +0.24pts / 25.35pts. Trade activity was relatively slow on trade value turnover of Php602.87m vis a vis Php704.26m yesterday. There were 15 gainers, 63 decliners and 50 unchanged issues. Trade focus (most active stocks) were on TEL, SMCB, AC, MERB, SLC, ABSP and ALI which altogether accounted for 58.7% of total market turnover. TEL and SMCB accounted for 13.5% and 9.1%, respectively, of total market turnover.

Index-linked stocks breadth had 3 gainers, 15 decliners and 15 unchanged issues. Index-linked stocks that declined were TEL, AC, MBT, ABS, PCOR, JGS, ION, and MPC. Index-linked stocks that gained were ALI, PNB and JFC.

Foreign selling was evident on TEL, ABSP and AC. Net foreign buying was evident on SMCB and MERB

Domestic interest among small cap stocks were on Mondragon and PNB. Mondragon gained 7% on news of its new term loan that increases likelihood of MLRC's reopening. PNB gained 6.8% as newswires reported that Lucio Tan's investment firm was the lone bidder for the government's 30% stake at Php100/share.

PRICE SCAN: MBT - downtrend continues to another new 20-month low at 175
ABSP - on an 8day consecutive downmove at 51.0
PNB - set a 19day high at 63.0

Sell-offs continued further on increased signs of domestic economic slowdown and regional markets weakness. The National Statistics Office released today that May imports declined 3.8% yoy last May from 2.8% last April. Slower
imports will curtail manufacturing output and export growth. The government likewise announced a likely cut in pork barrel funds to stem-off a ballooning budget deficit. Such announcement is taken as a confirmation of overwhelming
budgetary worries due to increased spending for the Mindanao crisis, lower revenue collections and delays from the privatization program.

The expected 2nd part of the oil price hike due this week and the likely clamor for a parallel increase in wages and transport fare adds to the near-term sell-off tact and is keeping investors buying interest sidelined. Such overall
market pessimism was enough to shrug-off reports of an improved satisfactory rating of President J. Estrada.

The Thai baht fell further today to intensify pressure for the peso to decline anew. The peso slightly declined to an average rate of Php44.639/US$ at midday from its yesterday's close at Php44.59/US$.

The Phisix was generally on a downtrend today at its range of +0.38pts /-24.65pts. All sectors declined with the oil and property indices dropping the most at 8.96% and 2.7%, respectively. The sell-off was notably accross the
board with 15 gainers, 81 decliners and 42 unchanged issues. Selling pressure marginally increased trade activity to Php704m from Php610m yesterday. Focus of trade (most active) were on ABSP, BPI, ALI, MBT, AC, MEG and EBC which
altogether accounted for 51.7% of total turnover.

Index-linked stocks were mostly lower with 4 gainers, 22 decliners and 7 unchanged issues. Decliners include ALI, MBT, AC, BPC, ABS, PCOR and SMCB while gainers were EBC, MERB, MPC and LC.

PRICE SCAN: BPI - on a 7week low at 76.50
MBT - dropped to a 20-month low at 178 but closed at 180
ABSP - on a 7day consecutive downmove at 51.50

Philippine National Bank (PNB) - The Secretary of Finance reportedly lowered the floor price for the sale of its 30% stake in PNB from Php85 to Php80 per share to increase investors interest on the auction set for tomorrow July 19th.
PNB's share price was down Php0.50 to Php58/share but PNB Securities led buyers and accounted for 38% of total transaction.

Ayala Land Inc. (ALI) - The Ayala Land Inc. (ALI) bested MPC and SMIC for its bid for the 9.92 ha Lot C in Fort Bonifacio which is intended for the transport (railway, bus, parking) system, convention center, shopping and trade center.
ALI submitted a bid for Php6.966b capital and a Php700m cash upfront for an equivalent price per sqm of Php77,200.00 which is 93% and 42% higher than the indicative price and the bid price of MPC. Other listed firms that failed to
bid but was qualified for the auction were Robinson Land Corp. and Megaworld Corporation. (ALI was down Php0.30 at Php5.70, SMIC's property affiliate SMPrime was unchanged at Php5.20, RLC was down Php0.02 to Php2.30, and MEG was down Php0.01 at Php0.92)

MPC was also an active bidder for Lot B (hotel/condo/museum area), Lot A (office/entertainment) and Lot E (for the information technology economic zone). The submitted financial development proposals for the other lots attracted few bidders. MPC's interest in Lot's A, B and E reflects MPC's continued optimismfor the prospect of the property which is adjacent to its franchise area. Telecom firms affiliated to MPC's parent firm - First Pacific, namely PLDT,
Smart and Piltel is likewise positioning itself for the information technology zone at the new business district. The Ayala Group's non-interest in the information zone sparked queries why it does not intend to position its telecom
firm (Globe and Islacom).

Increased expectations towards higher domestic interest rates resulted to another sell-offs as one member of the Economic Coordinating Council (ECC) confirms wariness that the budget deficit target for the year will likely be surpassed. Such domestic worries were more than enough to keep investors sidelined and let the sell-offs from the past two trading days to extend further.

Trade activity was relatively thin at Php609.913m with focus (most active) on TEL, ALI, ABSP, SMC, AC, EBC and LAND which accounted for 53% of total turnover. There were 23 gainers, 47 decliners and 62 unchanged stocks.

The Phisix narrowly moved with a downside bias at a range +1.31pts / -10.99pts. Index-linked stocks that kept the index lower were ABS, SMPH, MER, EBC, MPC and MERB. Index-linked issues that gained were TEL, PCOR, PNB and LND. Among index-linked issues, there were 4 gainers, 13 decliners and 16 unchained issues.

LAND was among the top traded given the transaction cross for 8.33m shares at Php3.25.

President J. Estrada's firm stand for the firm prosecution of those that will charged by the SEC on the BW scandal further kept interest away from BW. Indications point to an expanded list of individuals and brokers that will be charged with the investigative report set for release today by the SEC. The much-awaited list of top market investors has long kept domestic order flows significantly low. BW's share price closed Php0.2 lower at Php4.50. BW's biggest shareholder - Megaworld, also dropped Php0.04 at Php0.93

News reports of the Sultan of Brunei's likely investment in Mondragon resulted to a brief trading suspension. Mondragon later informed the PSE that it has not initiated any negotiations with the Sultan of Brunei for its likely investment in Mimosa Leisure and Resorts Corporation (MLRC). Mondragon gained 10% at Php0.89.

Metro Pacific Corporation (MPC) announced that sale before the end of July 2000 of its 100 percent interest in Metrovet, Inc. to Agribrands Animal Health of the USA. The sale has been widely anticipated by the investment market given MPC's thrust to divest from its non-property subsidiaries. MPC closed lower by Php0.03 at Php0.65.

Waterfront Philippines, Inc. (WPI) reported to the PSE of the Board's decision of recission of its 54% equity investment in Polar Peak Philippines, Inc. - now named Grand Ilocandia Resort and Development, Inc.) due to its unprofitable operations and weak business potential

Tbill yields increased for longer tenors. The 91-day Tbills was unchanged at 8.89%; 182-day Tbills increased from 9.901% to 9.963%; and 364-day T-bills increased from 10.786% to 10.989%.

PhilWeb, Inc. (WEB). Corporate insiders confirmed that the profitable performance target of WEB for this year based on its programmed expansion is deemed unrealizable given significant technical delays in its regional expansion. Indications point to a failed negotiation for PhilWebs target acquisition for two (2) cable companies but the firm remains keen towards pursuing such plan. Marketing programs are however focused towards improving access business with its ISP products. PhilWeb will hold a business briefing for clients, partnets, etc. this Friday. It is also set to launch its installment-based computer with ISP purchase to increase its subscriber base.

Digitel - The recent price war for IDD has pushed Digitel to likely follow the IDD rate cut effected by PLDT, Globe, Smart and Piltel. Severe economic damage from the recent typhoon that battered the northern Luzon is anticipated to lower revenues and increase collection difficulties anew.

Friday sell-off factor took centerstage on lack of follow through buying on select blue chips. Marginal gains from foreign markets (Dow +0.05%, Nasdaq +1.84%, Hang Seng +0.21% by midday) didn’t perk buying interest as focus gradually shifts toward 2Q2000 corporate earnings report towards the end of the month.

Investors profit-taking mode kept the Phisix lower most of the session at a range of +2.77 / -12.41. Trade activity was relatively low at Php640.82m with noticeable net foreign selling. There were 23 gainers, 47 losers and 60 unchanged issues. Among index-linked stocks, there were 3 gainers, 16 decliners and 14 unchanged issues. Index-linked stocks that registered gains were ABS, MBT and LTDI. Index-linked stocks that pinned the index lower were AC, SMPH, BPC, MPC and MER.

Trade focus (most active stocks ) were on TEL, MEG, BPI, SMPH, MUSX and ALI which altogether accounted for 54% of total turnover. TEL and MEG accounted for 19% and 15%, respectively. All sectoral indices declined except for the financial index which gained 0.05% as MBT closed higher Php189.0.

The financial markets continued focus on the foreign exchange and overnight rates had nothing new to speculate on. The CB Governor maintains its institutional view that the peso’s fall is overdone and overnight rates will be kept unchanged. The peso slightly improved at a range of Php44.50-44.65/USD from its yesterday’s close at Php44.705/USD. Trade turnover at the foreign exchange market was relatively high at US$105m by midday compared to a full days transaction worth US$145m yesterday.

PRICE SCAN: SPI – hit an all time low at Php7.10 before closing at Php7.20
LTDI – now on a 9.5month high at Php35.0
MON – opened higher at Php0.81 from yesterday’s close at Php0.79
GLO – on a 19day high at Php16.0 but closed at Php15.50
MUSX – on a 16day high at Php5.50
ABSP – on a 4th consecutive price decline at Php54 from Php57

SAN MIGUEL CORPORATION. The 27% stake held by the government under the coco levy fund has generated 2 foreign buyers with aligned businesses similar to SMC. Rumors point to an Asian and a US –based firm which will meet the business mission entourage of President Estrada in its trip to the US next week.

MERALCO - FIRST PHIL. HOLDINGS. The second day of the joint legislative meeting for the drafting of the omnibus power bill failed to reconcile differences focused on Napocor’s privatization. Although the special session of Congress has the omnibus power bill among its top priority, Senate team Chair Sen. Osmena does not intend to push through in finalizing the bill for approval and hinted of further delays until September.

OMICO CORPORATION. Select legislators does not want to grant emergency economic powers to the President for the economic program for Mindanao on alleged beneficial impact for cronies. Omico Corporation’s was singled out as a potential beneficiary given its power development proposal (Agus 3) in Mindanao.

BANK OF PI. Corporate insiders denied rumors that it has placed Far East Savings Bank on the selling block.

PNB. Lucio Tan’s controlling exposure in both Allied Bank and PNB has triggered clamors for a violation of the General Banking Act. Lucio Tan’s possible participation in the bid for the national government’s 30% stake will be known early next week prior to the July 19th bidding.

ATN Holdings. ATN Holdings is expected to announce its focused effort to develop its own convergence theme. Foreign strategic partners are already at hand to boost ATN’s entry in the tech sector.

MONDRAGON. Malacanang approval for the rehabilitation plan on Mimosa Leisure and Resorts Corporation is rumored to be finalized soon. Some market watchers are speculating for the deal to be announced this weekend. Speculative interest on Mondragon has emerged.

DMCI Holdings. DMCI is forced to scale down its projects and tap the low and middleincome housing projects given the slump in the property sector. DMCI is repositioning itself among property developers that will tap the national government’s mass housing program.

Investor optimism slightly improved given the peso's slight recovery, US market's overnight gains, and a firm stand by SEC regulators to pursue its case on the BW scandal.

The Phisix stayed positive throughout the session with its intraday high registering a gain of 11.17pts. There were 38 gainers, 36 decliners and 47 unchanged issues. Among index-linked stocks, there were 12 gainers, 7 decliners and 14 unchanged issues. Index-linked stocks that gain includes AC, ALI, EBC, and PCOR while decliners were led by TEL, ABS and MBT.

Trade activity significantly increased to Php1.32b. Most active stocks were TEL, CYBR, SMC, MEG and BEL which altogether accounted for 69% of turnover. TEL and CYBR accounted for 29% and 19%, respectively. Guoco Securities executed a 420million share cross transaction of CYBR at Php0.60/share.

First Pacific Co. reported its acquisition of Metropacific's stake in PLDTfor a huge premium to market price at Php900m per share. Domestic brokers surprisingly dominated net buyers of PLDT while net sellers continous to be led by foreign brokers.

The Securities and Exchange Commission (SEC) Chair has relieved the Director of its Prosecution and Enforcement Department (PED) for the latters' doubt on the strength of their evidence for those that will be charged in its investigation of the BW case. The investment public applauds SEC's focused effort to proceed with its prosecution of those involved in the alleged stock manipulation incident. Others expect the case to drag further given the objective non-concurrence of the PED Director in select items of the charges identified in its draft report. BW closed lower by Php0.20 at Php4.80.

PRICE SCAN: ATN - on a 3wk high at 3.45
ALI - on a 15day high at 6.0
ION - on a 4month high at 13.50
LTDI - on a 9month high at 34.5
ICT - attained a 14day high at 1.38
MBT - on a 21month

MERALCO - FIRST PHIL. HOLDINGS. Investors await developments on the ongoing discussions for the passage of the omnibus power bill. Recent reports show a legislative deadlock and non-concurrence to the drafted details of Napocor's privatization. Indications of its completion will improve interest on Meralco and First Philippine Holdings. Legislative committee hearings are ongoing with next week's special session of Congress as the target passage of the bill.

UNIWIDE. The full approval of the rehabilitation plan of Uniwide and the investment of Casino is rumored to be complete and is due to be announced prior to President Estrada's trip before July 24th. Trade interest in UW remains low but this could increase significantly once SEC's receivership committee meets anew before the end of the week.

BW Resources . SEC's investigative report is due for release on Monday - July 17th. The rumored divestment of major BW stockholders Stanley Ho, Dante Tan and Andrew Tan were denied by BW in its statement to the PSE today.

IONICS CIRCUITS. Ionics released a new set of production targets for its new orders generated from Philips. It likewise denied the rumored pullout of production orders from IBM. Major brokerages are expected to further upgrade its earnings target for Y2001 and Y2002.

DMCI Holdings. DMC has already submitted its FY1999 annual report to the PSE which effectively removes the threatened trading suspension by August 4th.

Trade activity slightly improved to P903.311m – the highest trade turnover for the past two weeks!

Investors focus turned into profit-taking on increased worries attributed to the peso’s steady fall to a 20month low to Php45.15 yesterday and on jihad concerns being called for by Muslim rebels in Mindanao. Investor’s underlying weak confidence in the economic and political condition intensified further due to the conflicting review on the peso’s fall by the country’s monetary and executive officials. Public outcry against the fall of the peso increased domestic speculation that monetary managers will likely defend the peso by allowing a slight increase in key interest rates. Such scenario casts a near-term bearish bias on the stock market which evidently triggered some profit-taking.

Market apprehension due to the peso fall continued in early trade as the peso exchange rate opened at Php45.1/USD from the past day’s close at Php44.82/USD. Foreign exchange transaction continued to swell at US$85.5m in morning activity but speculation of CB’s intervention pulled down the exchange rate to a low of Php44.835/USD with midday average rate at Php44.942/USD.

The phisix had a clear bias to decline with today’s trading range at +2.12 / -8.9. Today’s intraday low at 1554.18 marked its first drop below a previous day’s intraday low which can be viewed as a nearterm trend breakdown. There were 34 gainers, 36 losers and 50 unchanged stock prices. The commercial-industrial, oils, and property indices were down while the all shares and mining index was up.

PRICE WATCH: BELW – UP 16% at 0.145
CMP – UP 9% at 0.23 for a 5day record high
FER – UP 7% at 1.44 with intraday high at 1.46 reflecting a 9day high

The Securities and Exchange Commission (SEC) announced it will release its investigative report on Monday July 17th. SEC’s Enforcement Division Chief has publicly issued its non-concurrence to a portion of the proposed final draft of the investigation. Such incident further cast doubt on the integrity of the report and has triggered speculation that the much awaited filing of criminal charges will be delayed further. The investment public expects the SEC to finalize its investigation prior to President Estrada’s trip to the US on July 24th. BW closed higher by Php0.15 to Php 5.0

Trade activity remains low at Php738.74m (vs. Php766.2m yesterday). Without the Php170m cross transaction for MHI, trade turnover was 26% lower than yesterday.

The resulting Tbill auction yesterday firmed up expectations of the government's bold action to keep interest rates low. The apparent liquidity of the market and CB's inactivity in the foreign exchange market allowed the peso to depreciate further to another record high at Php44.86/US$ by midday. The relatively huge foreign exchange volume of USD92m during the morning session apparently indicates investors preference to hold US dollars. Speculation remains strong towards further peso depreciation unless the country's monetary managers shift to allow some tightening in interest rates. The Japanese yen is likewise gaining strength as the regional currency market expects the Bank of Japan (BOJ) to shift away from its zero interest rate policy. BOJ meeting is set on Monday - July 17th. The yen's reasonable rise further adds pressure to the peso to depreciate anew. This situation has taken centerstage and has kept interest in the stock market reasonably low.

Lackluster trade activity in the US (Dow Jones up 0.10%) and Asia (HK was down 0.10% by midday) added further kept investors sidelined.

Focus of trade activity (most active) were on ABSP, MERB, MPC, EBC, BPC, AC and BW. Index linked stocks that kept the index firm were: AC, EBC, MPC, FDC, BPC and PCOR. Decliners among index linked stocks were MBT, ABS, MEG, DGTL and PNB. The phisix narrowly ranged at -1.78pts / +8.78pts.

The PSE announced an extension of ten(10)trading days or up to July 28th for the some companies to submit their first quarter financial report and pay the basic fines. Non-compliance will mean suspension of the shares by July 31st. These companies are:

1. MRC ALLIED INDUSTRIES, INC.
2. PRIMETOWN PROPERTY GROUP, INC.
3. SINOPHIL CORPORATION, and
4. WELLEX INDUSTRIES, INC.

A separate extension deadline was granted until August 3rd with noncompliance trading suspension by August 4th was provided for the following firms:

1. ATLAS CONSOLIDATED MONING AND DEVELOPMENT CORPORATION
2. SEMIRARA COAL CORPORATION
3. SINOPHIL CORPORATION
4. WISE HOLDINGS, INC.
5. MONDRAGON INTERNATIONAL PHILIPPINES, INC.
6. DMCI HOLDINGS, INC.
7. UNIVERSAL RIGHTFIELD PROPERTY HOLDINGS, INC.
8. MEDCO HOLDINGS, INC.
9. BHI HOLDINGS, INC.
10. ASIA AMALGAMATED HOLDINGS CORPORATION
11. REYNOLDS PHILIPPINES CORPORATION
12. MRC ALLIED INDUSTRIES, INC.

PRICE WATCH:
EBC - up for a 3day high with intraday high set at 46.50
FLI - broke resistance at 2.06 with an intraday high at 2.10
AC - followthrough buying emerged after the past day's breakout at 8.20 and now reflecting a new shorterm high
at 8.40
BW - ended its series of uptrend to pullback at 4.85

Trading activity remain relatively low at Php766.178m but a marginal improvement from last week's daily average turnover of merely Php616m. There were 40 gainers, 29 decliners and 49 unchanged stocks traded today. All sectors were up except for the financial index.

Positive sentiment reeled from US Dow Jones and NASDAQ's market's gain of 1.5% and 1.6% last Friday. HK's index also opened strong and was up 2.2% by mid-day. Global markets find lesser pressure for another US rate hike after last week's lower than expected job's report released last Friday. Local market overhang from the Mindanao crisis somehow eased as the government announced the full takeover of MILF's major camp in Mindanao. Impact of the transport strike set for today has yet to be realized in the afternoon.

The Phisix is now on a 15day high marked by a 9day uptrend. The Phisix stayed on the positive end throughout the session with its gains extending to +16.06 around mid-trading.
Index-linked stocks that kept the index firmer were: AC, ALI, ABS and MER; the decliners includes MBT, TEL and SMCB.

The index may have breached key resistance at 1572 for a breakout if not for Metrobank which reduced index gain by as much as 7pts.

Focus of trading activity (most active stocks) were on SMCB, MERB, ABSP, SMPH, ALI, TEL and BPC which altogether accounted for 53% of total market turnover.

PSE announced several warnings of non-reportorial on CMP, PNC, AT, BH, WIN and MED. PSE intends to suspend listing these companies for non-compliance of reportorial requirements.

The peso depreciated anew to a new record high at Php44.13/US$ during the morning trade session.
PLDT officials informed the PSE that the news report citing Smart Communications's likely 1H2000 loss of Php960m is erroneous. PLDT has not yet finalized its assessment for its 2Q2000 operations ending June2000.

The Central Bank announced its support for the relaxation of the bank's secrecy law in support of antigraft and corruption thrust of the government. Albeit negative for bank issues, policy makers are not inclined to revise the general banking act as it is deemed not a priority among policy thrusts. Most banking stocks except for MBT remain unchanged.

POST MARKET NEWS
TBill interest rates remain unchanged: the 91day Tbill was unchanged at 8.89% and offers for the 182day and 364day bills were all rejected.

Trade activity improved to Php882.76m – the biggest turnover for the week!. Average daily turnover for this week was Php615.64 or approximately 26% lower than the past week.

The Philippine Composite Index (Phisix) registered its highest close for the week for a 1.08% gain. Slow and gradual upmove continued today to keep the phisix generally up with the intraday index up 10.77pts at 1553.18 – a 12day high

Major news focus continues on the steady depreciation of the peso. The peso declined anew to a high of Php44.015/US$ from yesterday’s close Php43.95/USD. The peso lost 1.8% since last week – a higher yield compared to the gain registered by the phisix!

Added pressure from the peso’s weakness comes from the anticipated interest rate hikes in US and Japan. The G-7 meeting is slated this weekend but with little chance to discuss global interest rate policy.

Hong Kong market’s firm performance in morning trade (+1.6%) slightly improved the domestic market sentiment.

Trade focus (most actively traded stocks) were on: MEG, TEL, BW, SMPH, ABSP, and MERB. which altogether accounted for 53% of total market turnover. MEG continues to be the most traded stock for the 3rd consecutive trading day with today’s turnover accounting for 14% of total turnover.

Index-linked stocks that kept the Phisix higher were: SMPH, TEL, ABS, ION, BPC and MERB. The decliners include MBT, PCOR and FLI

Price Watch:    MEG - upmove continues to its new high at Php1.0 (a new high since Jan 4th)
                                ABSP - firm at its 10wk high at Php55.50
                                 ION - registered its for a 15wk high at Php12.50
                                DGTL – on a 14day high at Php0.79

Bank of Commerce won the bid to acquire Urbanbank due to its faster payback period. Other Urbanbank shareholders/depositors such as SMC, Meralco, Petron and SSS are studying proposals to convert their equity/deposits to BoC shares.

Most of the top active foreign brokers were net sellers. Stocks with net foreign sellers include MERB, SMPH and TEL

Market Determinants next week: 1) US rates outlook after the US jobs report release this Friday, 2) G7 ministers comment on the global interest rates, 3) transport group strike due Monday, and the 4) timing of the 2nd part of the oil price hike petition. Surprising developments awaited on the Mindanao hostage crisis and the economic managers reassessment of interest rate policies.

Trade activity remains low but relatively higher at Php687.271m as against Php585.924m yesterday.

The Philippine Composite Index (Phisix) remain locked in its sideways trend with today’s trading range at -2.37 / +5.71. Yesterday’s intraday was not breached but today’s intraday low was higher than yesterday.

The Central Bank governor brushed aside public concern towards the steady depreciation of the peso. Overnight lending rates were again kept unchanged. CB finds the recent peso drop as a temporary aberration and expects the peso to return towards the Php41.50-42.0/US$. The peso declined to 43.83/US$ at mid-day on increased trade turnover of US$97.5m given the halt of foreign currency trading yesterday afternoon due to severe weather.

Optimism towards a likely oil price decline after Saudi Arabia’s decision to increase oil production remains a non-event as other Islamic oil producing countries remains undecided if it will likewise follow suit.

Hong Kong market’s firm performance in morning trade (+0.8%) slightly improved the domestic market sentiment

Trade focus (most actively traded stocks) were on: BW, MEG, EBC, MERB, TEL, SMCB and ION. which altogether accounted for 66% of total market turnover. BW and MEG continues to be the most traded stock for a consecutive second day with today’s turnover accounting for 16.6% and 15%, respectively. Domestic interest on BW increased as reflected by higher transactions (+37% from yesterday) despite a 23% price surge (4.20 low yesterday to 5.20 closing price today). The SEC remains mum on the alleged release of its investigative findings and the filing of appropriate charges. Market talks point to an expanded list of individuals and brokers that will be charged accordingly. Market players treated the silence and the market’s low activity as an opportune time to play the trading price range of BW. MEG likewise reflected the same increased trade interest with a 37% surge in trade turnover with the share price closing higher by P0.02 to P0.98 – a retest of its 6month high.

Index-linked stocks that kept the Phisix higher were: SMPH, TEL, ABS, ION, PNB and FLI. The decliners include AC, PCOR and DMC.

Price Watch:   ABSP - registered a new 10wk high at 55.50
                               ION – registered its for a 14wk high at 11.50
                               SPI - recovered 4% from its 7month low at 7.20 registered yesterday

Unioil (UNI) dropped to its floor price on account of news reports confirming the likely sale or de-listing due to the debt problem of its parent firm - Wincorp.

Bank of Commerce – one of the top bidders for Urbanbank announced the likely conversion of deposits/equity to BOC ownership. It was a non-event for SMC as its share price was unchanged.

Market talks of foreign buying interest on FLI further pushed its share price to P1.96 CL continues to be a net buyer.

LATE NEWS BREAK: The National Government announced that PNB Chair L. Tan is studying plans to purchase the government’s 30% stake in PNB. PNB’s share price gained P1.50 to P57.0

The Philippine Composite Index (Phisix) continued its sideways trend with today’s trading range at -5.33 / +7.04

The National Statistics Office released its CPI for June at 3.9% which was significantly below market expectations of 4.3-4.6%. Although the data result reflects moderate inflation pressure, the NEDA Director anticipate 2H2000 inflation to move higher towards 4.0 to 4.3% given the full impact of the June oil price hike and the expected additional oil price increase petitioned by oil firms. Optimism on oil price decline was a major global headline today as Saudi Arabia decided to increase oil production in a targeted effort to pull down oil price to US$25/barrel from nearly US$31/barrel

Good inflation data and a firmer Hong Kong market performance in morning trade (+1/1%) slightly improved the domestic market sentiment

The peso steadily declined anew to a new high at 43.695/US$ from its close at US$43.53 yesterday. CB maintained its key overnight rates steady which confirms a growing market belief that the Monetary managers intends to secure economic growth by keeping interest rates low at the expense of the foreign exchange rate. The recent Tbill auction reflects increased market liquidity that allows the CB to accept low bids. For foreign equity fund managers, the peso’s steady depreciation and added anticipation for further weakness allows them to be sidelined as equity prices may tend to drop further while they gradually increase their buying power.

Trade focus (most actively traded stocks) were on: BW, MEG, SMC, MERB, ABSP and SMCB. which altogether accounted for 56% of total market turnover. BW and MEG accounted for 13.3% and 13%, respectively.

Sell-off on BW Resources continued on early trading to an 11week low at 4.20 before rallying and close to its intraday high at 4.90. The highly anticipated filing of charges by the Security and Exchange Commission (SEC) given its investigative findings on stock manipulation on BW was not released yesterday!

Index-linked stocks that kept the Phisix higher were: AC, TEL, ABS, MEG, JGS and ION. The decliners include ALI, SMPH, EBC, MBT, PNB and MERB

Price Watch: AC - registered a new 6wk high at 8.20
ION – up for a 1month with an intraday high at 10.50 (closed at 10.25)
SPI - down to a 7month low at 7.20
EBC – on a new low at 42.50 since Oct1998

MEG was surprisingly 2nd most active with OCBCaccounting for 90% of net buyers

EBC was down on a new low at 42.50 with ING leading sellers and accounted for 90% of total turnover. ING has been a noted consistent net seller for the past week

ION reflected the most surge in volume vis a vis its average turnover. Buyers were largely local brokers

Market talks includes a foreign buy flows on FLI (+.02 to 1.90). CL led net buyers and accounted for 91% of net transactions
Net foreign sellers seen in MERB, TEL and SMPH

LATE NEWS BREAK: The National Government announced the rebidding of its 30% stake in PNB on July 19th with an indicative price of P85/share (PNB closed down 1.50 at 55.50)

The Philippine Composite Index (Phisix) narrowly moved ( -6.87 / +3.23 ) but closed at its high for the day on a late buying rally on AC, LTDI and ABSP. These three stocks closed at its high for the day!

The National Government announced today a slowdown in export growth to 6.7% for the month of May from 13.7% the same period the past year. Weaker exports further threaten the peso’s stability over the near-term. It will be difficult for the country to further improve its export performance if our top export market –US is likewise poised to slowdown its growth momentum.

The mixed results in yesterday’s Tbill auction show hints that the Central Bank is favoring to keep key interest rates low in expense of a weaker peso!
TBILL Average Yield     91day - 8.89 vs 8.896
                                             182day - 9.901 vs 9.849
                                            364day - 10.796 vs 10.685

The peso steadily declined anew to a high of P43.60/USD from its closing rate of P43.53/USD yesterday.

Weaker funds and order flow is expected given the US market holiday and the data release on the country’s June inflation rate set tomorrow – Wednesday. Regional markets were also narrowly changed.

Trade focus (most actively traded stocks) were on: SMCB, AC, TEL, BW, LTDI and MBT which altogether accounted for 57% of total market turnover. SMCB and AC accounted for 20% and 17%, respectively.

Sell-off on BW Resources continued on its 12th day as the Security and Exchange Commission (SEC) is set to release its investigative findings on stock manipulation on BW this afternoon. The announcement is highly speculated to include an expanded list of individuals who will be charged. Market watchers believe that a timely release of the SEC findings with its formal charges is necessary to improve investor confidence on the local market.

Index-linked stocks that kept the Phisix higher were: AC, ABS, LTDI, CMT and PNB. The decliners includes SMPH, and MERB

Trade activity slumped to a new 16.5 month low at Php397.55m. Weak domestic investor interest and the long holiday weekend in the US kept trading activity low. Focus of action is pegged towards the release of Phil. CPI tomorrow or Wednesday and on US employment data by Friday.

Economic news released today validates further economic weakness: RP’s balance of payment surplus registered a 48.5% decline for 1Q2000

Peso steadily depreciated anew: mid-day rate registered a high of Php43.58/USD from its Php43.23/USD close last Friday. CB Governor commented that no CB intervention has been taken and views the Php42.50-43.00/USD as a comfortable rate

Oil price hike of approximately 4% took effect last Friday is deemed temporary. Major price hike petitions of 0.75 to 0.95 is due next as the government finds no guarantee to cap the increase. The partial increase is speculated as a deliberate effort to curve growing public unrest prior to President Estrada’s departure to the US on July 24th.

Trade focus (most actively traded stocks) were on: SMCB, BW, EBC, AC and ALI which altogether accounted for 51% of total market turnover. Index-linked stocks that registered gains were; ALI, SMPH and TEL; decliners includes AC, ABS and CMT

Most active foreign brokers today remains net sellers of AC, EBC, MERB and BPC; Big cap stock buy focus among locals were on ALI, SLC and SMPH.

BW Resources declined anew on a news report citing the Security and Exchange Commission (SEC) release of its investigative findings on BW stock manipulation tomorrow (Tuesday) with a likely expanded list of individuals that will be charged. BW’s price downtrend marked its 11th day decline (to one month record low at 4.60). Among the SEC “accused BW brokers” that will be charged were notably net sellers for the past week!

PSE issued a trading halt on VITA and UNI but were later allowed to trade. VITA and UNI informed the PSE that no material information has taken effect to warrant public disclosure. UNI or Unioil denied any knowledge that its majority owner-Wincorp securities is due to divest to pay off outstanding debts.

PSE issued a warning for non-compliance of financial statement issuance to ZIP, BH, CMP, AT and MED.

The index narrowly moved (-5.7 / +2.71). Immediate support at 1522/1516/1461 level

Transaction activity remains low. Total value turnover today at P938.8m - the highest for the week. This marks the 6th consecutive trading session of trade turnover below P1billion. Average transaction value for the week was down 18% from the past week.

Phisix narrowly moved (+1.25/ -8.6) to close at its intraday high. The market's short rally is attributed to windowdressing for select listed firms for the second quarter price record. The Phisix is 8.98pts lower from the past week.

Focus of trade (most active stocks) were TEL, SMCB, AC and SLC which altogether accounted for 50% of total transaction. PLDT accounted for 33% of total.

Weak investor interest still looms given the following: a) weak overseas market movement, b) peso depreciation fear, c) expectation of higher inflation rate for June which will be released before Wednesday next week, d) failure of the government appointed negotiation panel to end the Mindanao hostage crisis today - the deadline set by President Estrada, e) budget deficit concerns and pessimism towards the targeted P22b debt note issuance to fund the deficit, and f) a lingering threat of public unrest given the likely oil - power - and transport fare rate hike petitions!

Profit warnings seen as wirenewsreports highlights PLDT's likely weaker-than-expected profitability this second quarter.

Top foreign brokers were notably net sellers of TEL and SMPH, and net buyers for SMCB and AC.

Local investor focus was on a sell-off on BW Resources to an intraday low of 4.90 - its lowest for the month and a steady 10day downtrend from its recent high at 7.0. Market speculation points to another potential wave of selling as the start of July will release huge blocks from its lock-out period from placements a year ago!

The prevailing domestic risks has pushed local players to favor Sun Life of Canda (SLC) and Manulife Financial Cop. (MFC).

June 29, 2000 Thursday

US FED kept key interest rates unchanged! But trade interest remained weak due to lingering domestic concerns - the peso depreciation, the Mindanao crisis and the upcoming oil and power rate hike .

Trade turnover was again low at P768.2m; focus of trade (most active stocks) were on SMCB, PLDT, MEG, and ABSP which accounted for a combined 50% of total turnover; SMCB and PLDT accounted for 22% and 12%, respectively.

Most active stocks among the best gainers was Baguio Gold (B) which was up 25% on news report that Lucio Tan plans to acquire majority of Baguio Gold for the backdoor listing of either its tobacco or beer firm; B was partly suspended during the trading session; the report was neither confirmed nor denied; the rumor was likely stirred from yesterday's actual stockholders meeting.

Overall bearish sentiment is partly focused to sell on a possible window-dressing tomorrow for the end of the quarter bookings.

News reports points to a likely average petrol cost hike of P1.30 per liter before the end of the week. This is expected to spark further public protest.

Most active foreign brokers today were mostly net sellers of PLDT and ABSP; foreign buying went to Megaworld.