NEWSFLASH

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PESO DIVES, STOCKS RISE

Manila, Oct. 15, 1997 - The peso retreated to an average rate of P33.308/dollar, losing 43 centavos from Monday's average of P32.883 to the dollar, after the Bangko Sentral ng Pilipinas (BSP) pulled out of trading.

Traders say the loss indicated that only the intervention of the central bank in the past few days allowed the peso to regain value.

Stocks, on the other hand, rose for the fifth straight day as investors continued to purchase bargain issues. The Philippine Stock Exchange index rose 12.12 points, to close at 2,074.21 for an appreciation of 0.6 percent.

Stock traders said investors who were heavily buying yesterday were preparing for today's scheduled reduction of banks' reserve requirements, which could infuse P10.6 billion into the financial system. Those funds could be funnelled into the stock market, analysts theorized.

Tuesday's advance placed total gain at 153.58 points, or 8 percent, since Oct 8.

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