Mines continue to shine

The local stock market firmed up for the third straight session Friday as the favorable US jobs report that cheered Wall Street likewise boosted domestic investor sentiment.

The main-share Philippine Stock Exchange index added 10.71 points or 0.25 percent to finish at 4,321.73. The index pulled back by another 2.6 percent for the week but it was still ahead by 2.9 percent from the end-2010 close.

The mining/oil counter continued to be the day’s top performer as its index jumped another 2.6 percent. The financial, property and holding firm counters also ended in positive territory, offsetting the sluggish trading in the industrial and services counters.

“Investors nowadays are still keen on certain stocks with those in the mining industry currently a clear favorite. The turmoil in the euro zone and the mess in the US will persist, serving as a great weight pressing down on the market. Despite this fact, there are opportunities arising and investors can take advantage by selectively buying certain stocks,” said AB Capital Securities analyst Prince Anthony Yeung.

“Mining stocks, particularly those into gold, serve as favorites now as gold prices ascend amid a flight to safety by global investors,” he said.

This developed as US stocks rallied back to positive territory overnight. The closely watched Dow Jones industrial index was up 423.37 points or 3.95 percent to 11,143.31 on news that the number of Americans applying for unemployment benefits had fallen below 400,000 for the first time since April.

Value turnover amounted to P5.67 billion. Local investors kept the equities market buoyant as foreign investors were still in a net selling position of P437 million for the day.

There were 107 advancers and 37 decliners while 38 stocks were unchanged.

Lepanto “A” (open to local investors), Metrobank, AGI, Lepanto “B” (open to local and foreign investors), SM Investments, ICTSI, BPI, Security Bank and Aboitiz Power led the index higher. Other stocks that gained in heavy trade were Manila Mining, Zeus Holdings, NiHao Mining, Atlas, San Miguel and Vista Land.