LOCAL STOCKS snapped out of a two-day slump yesterday, defying a still gloomy offshore investor sentiment, as skyrocketing gold prices further boosted optimism on the mining sector.
The main-share Philippine Stock Exchange index added 53.91 points or 1.24 percent to finish at 4,404, led by the high-flying mining sector, which gained another 4.4 percent.
All counters ended in positive territory. Next to the mining sector, the financial and property counters were likewise big beneficiaries of the day’s upswing, respectively rising 1.57 percent and 1.73 percent.
Eagle Equities president Joseph Roxas said the surge in global gold prices to a new high boosted the mining play in the local market.
In a commentary yesterday, investment bank Credit Agricole CIB recommended a portfolio allocation of 5 percent for gold, noting this would give investors “protection from both inflation and deflation.”
Mining stocks were again the day’s outperformers, led by Lepanto “A” and “B,” Philex, Semirara and Manila Mining “A.”
Metrobank, San Miguel Corp., Global-Estates Resorts Inc., Universal Robina Corp., DMCI Holdings, EDC, PLDT, Aboitiz Power, PNB, Ayala Land and Metro Pacific Investments also surged in heavy trade.
On the other hand, Meralco and ICTSI traded in the red.
Value turnover rose to P6.76 billion from the previous days’ average of P4 billion. There were 103 advancers that overwhelmed 44 decliners while 33 stocks were unchanged.
Foreign investors helped perk up the market as there was P469 million in net foreign buying for the day.
The Dow Jones industrial average fell 58.88 points or 0.5 percent to close at 12,446.88 overnight. Investors were unnerved by news that Ireland’s sovereign credit was downgraded by Moody’s to junk status, overshadowing hopes that the US Federal Reserve might consider more economic stimulus.