PSEi slips below 7,700 mining bucks downturn

Mining stocks bucked the downturn at the local stock exchange on Wednesday on prospects of leadership change at the Department of Environment and Natural Resources (DENR).

The Philippine Stock Exchange index lost 20.84 points or 0.27 percent to close at 7,682.26.

Only the mining/oil index emerged unscathed, gaining 2.73 percent, as investors loaded up on long-battered mining stocks after the Commission on Appointments rejected with finality the appointment of anti-mining advocate Gina Lopez as DENR chief. During her term, Lopez either suspended or ordered the shutdown of a number of mining firms, which in turn protested alleged lack of due process.

All other indices ended in the red.

“Philippine markets failed to sustain early morning gains as investors resorted to profit taking,” said Luis Gerardo Limlingan, managing director at local stock brokerage Regina Capital Development.
Overnight, Limlingan noted that Wall Street had marginally gained.

At the local market, value turnover for the day amounted to P6.41 billion. Despite the PSEi’s decline, foreign investors were net buyers in the stock market, resulting in net inflows of P161 million.

There were also slightly more advancers (98) than decliners (92) in the market, suggesting that profit-taking was mostly on large-cap stocks.

Globe Telecom fell by 2.25 percent while Jollibee slipped by 1 percent. SM Prime, PLDT, BDO, DMCI, JG Summit, MPI and EDC also declined.

Outside of PSEi stocks, investors dumped shares of MRC Allied (-5.49 percent) and Cemex (-1.11 percent).

On the other hand, Semirara rose by 2.18 percent, tracking the upswing among mining-related firms and in line with upbeat earnings forecast for this year.

Ayala Land, URC and SM Investments also firmed up.

Among notable gainers outside the PSEi were Apex Mining (+18.24 percent) , RCBC (+2.66 percent) and Nickel Asia (+1.05 percent).