NEWSFLASH

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PESO DROPS, STOCKS POST SMALL GAINS

Manila, Dec. 3,1 997 - The Philippine currency suffered another drop in value yesterday, losing 10.8 centavos in its rate vis-a-vis the US dollar, and settling at an average of P35.127/dollar.

Volume turnover was a mere $64.2 million compared to $116.5 million the day before. The small volume reflected less corporate demand for the US dollar. The peso depreciation was seen as a spill-over of the speculation that it will be affected by the plunge of Asian currencies led by the Korean won.

The continuous inflow of dollar remittances from overseas Filipino contract workers cushioned the impact on the peso of the renewed uneasiness over currencies in the region.

Meanwhile, stocks posted minor gains for the third straight day but brokers worried that high interest rates might continue to hound the market.

The main share index closed 2.21 points higher, or 0.12 percent up at 1,779.25 points. Losers outnumbered gainers 46 to 39. Among the losers, Filinvest sank by 12 percent to a low of P1.16 due to rising interest rates. But bargain hunting pulled it back up to P1.38 by closing time.

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