NEWSFLASH

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PESO AND STOCKS REBOUND

Manila, Jan. 14, 1998 - The peso strengthened yesterday, with trading at the Philippine Dealing System averaging P44.073 to the US dollar, or a gain of 48.6 centavos from its Friday rate.

Traders said the peso's rise for the third straight trading day was mainly due to the new system of non-deliverable forward facility, which has substantially reduced for dollars from corporate borrowers.

At the Philippine Stock Exchange, the index rose 14.97 points, or nearly 1 percent, to 1,532.97 points. Over the past five trading days, the index shed 373.27 points, or 20 percent. The Phisix index rose for the first time in six days as foreign brokerages bought into the Ayala group on expectations that it will weather the economic crisis better than others.

Ayala Land Inc. rose 75 centavos to close at P13.25, parent company Ayala Corp, a diversified holding company, gained 50 centavos to close at P13.25.

The gains from the Ayala transactions kept the index from registering an overall decline.

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