NEWSFLASH

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STOCKS RISE AS GOVT LIFTS A SHARES RESTRICTION

Manila, Jan. 30, 1998 - Stocks rose yesterday in reaction to the peso's continued rally and to the Justice Department ruling allowing foreigners to buy Class A shares.

The opinion specifies that foreign funds could buy A shares, usually reserved for Filipinos, if they do it through a Filipino-controlled trust. Class A shares of Meralco and San Miguel went up while their Class B counterparts tumbled.

"Why buy the more expensive B shares when you can now buy the A shares?" said an analyst.

The ruling gives foreign funds a chance to hedge on A shares, which are sold at a discount to Class B shares though they have the same voting rights and claim to dividends.

Meralco A shares gained 15.6% to P92.50 while the B shares tumbled 7.7% to P120. San Miguel A shares rose 11% to P40.50, while its B shares lost 3.9% to P50.

The Phisix index advanced 48.92 points, or 2.8% to 1,782.07 points in light trading amounting to only P979 million. It was a third day of gains.

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