Philippine Stock Index Drops 0.5 Percent

© 2007 The Associated Press

MANILA, Philippines — Philippine shares slumped Tuesday following Wall Street's fall, but the decline was offset by last-minute bargain-hunting inspired by a report that the government posted a large budget surplus in November.
The Philippine Stock Exchange index fell 0.5 percent to 3,470.21 in moderately heavy volume.
"The market remains affected by uncertainties overseas. Some investors, however, have started to focus on our strong local fundamentals," said First Grade Holdings Managing Director Astro del Castillo.
Finance Secretary Margarito Teves reported Tuesday a budget surplus of 54.1 billion pesos in November, substantially higher than target set by government, due to receipts from the sale of state assets.
This has enabled the government to reverse a 10-month deficit of 41.5 billion pesos at the end of October into a surplus of 12.6 billion by the end of November, he said.
Top-traded Philippine Long Distance Telephone Co. rose 0.7 percent at 3,000 pesos, while Bank of the Philippine Islands was down 4.2 percent at 57.50 pesos, Ayala Corp. dropped 2.9 percent at 500 pesos.
Losers led gainers 66 to 41, while 59 stocks were unchanged.