A study prepared by the PSE showed that local stock prices, as tracked by the Philippine Composite Index (Phisix), went up by 15 (14.99) percent in 2005.

The increase was only 1.25 percentage points lower than the 16.24 percent hike enjoyed by front-runner Jakarta Composite Index of Indonesia.

"This means we beat Singapore, Malaysia and Thailand; and our investors on average earned more than their counterparts in said countries last year," said PSE president Francis Lim.

The PSE study showed that the Straits Times Index of Singapore went up by a lower 13.61 percent, which was good for a third place finish in the 2005 ranking of Southeast Asian exchanges.

The SET Index of Thailand advanced by only 6.83 percent, or just half the pace of expansion of the Phisix. The Kuala Lumpur Composite Index of Malaysia, on the other hand, shrank by almost one percent or by 0.84 percent.

"If the local market were not spooked by bad news from the political front, the Phisix would have probably enjoyed a higher growth rate; and the PSE indicator probably would have beaten all other stock indices in the region," Lim added.

"That’s why we at the PSE continue to pray for political sobriety and maturity among our leaders. We fully understand that their actions and decisions affect not only the prices of local stocks, but the future of millions of Filipinos," he explained.

Lim added that the PSE always bears in mind that a healthy stock market acts as come-on for companies to raise needed capital by conducting an initial public offering.

"If companies have enough capital, they will open new businesses, which in turn will create employment opportunities for ordinary Filipinos," he said.

Lim said bad news in the political front last year was offset by good news in the economic field, like expectations of higher earnings of listed firms and prospects of a lower government budget deficit due to the implementation of the expanded value-added tax. (JAL)