NEWSFLASH

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PESO STEADY, STOCKS RISE A BIT

Manila, Oct 9, 1997 - The peso weakened yesterday by 2.8 centavos, but this depreciation was taken as a positive sign in contrast to the frenetic trading which marked unprecedented plunges of the currency in the past days.

The peso settled at a weighted average of P35.565 to a dollar, slightly lower than Tuesday's P35.537, with brisk trading that totalled $215.7 million. Trading exceeded $200 million for the third straight day, indicating a continuing high demand for the US currency.

Traders said the Central Bank intervened, selling abut $50-$70 million to prevent another sharp fall in the peso's value.

At the Philippine Stock Exchange, shares registered positive gains Wednesday, in a technical correction which traders expect to be temporary. The main index gained 26.2 points, or 1.36 percent, to close at 1,946.83. It had dropped by 109 points from Monday to Tuesday.

Stocks advanced in early trading in reaction to the reopening of the central bank's overnight lending facility at a rate of 15 percent. Volume of transactions reached 1.32 billion shares worth P1.849 billion, up from Tuesdays 1.637 billion shares with a value of P1.399 billion.

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