Local stock index slips

Photo taken from www.pse.com.ph

MANILA, Philippines—The local stock market dipped on Friday on global growth concerns but the mining/oil counter performed strongly on speculation that a much-awaited mining executive order was finally forthcoming.

The main-share Philippine Stock Exchange index slipped by 7.3 points or 0.14 percent to close at 5,362.68. The local index retreated from Thursday’s record finish as global markets weakened as seemingly coordinated interest rate cuts by China, the European Central Bank and the Bank of England implied worries on the pace of global growth.

But while local markets tracked the weakness in equity markets elsewhere in the world, Eagle Equities Inc. president Joseph Roxas said the trend of monetary easing would be good for stocks moving forward.

“This means that money will be made not in the economies. It will be made in the markets,” Roxas said.

Despite the sluggish performance for the day, however, the mining/oil counter surged by 2.83 percent on speculation that a much-awaited mining executive order that will lay down the framework on mining for the rest of this administration has been finalized. The mining industry was abuzz with speculation that Malacañang would announce very soon an EO that may contain positive surprises for the industry.

For the week, the index gained by 116.27 points or 2.2 percent as the main index marked new all-time highs both in closing and in intra-day trade.

On Friday, the index was weighed down by the financial, industrial and property counters.

Aside from the mining/oil counter, holding firms also stayed afloat on Friday.

Turnover for the day amounted to P7.43 billion.

Despite the overall index decline, there were slightly more advancers (86) than decliners (81), which suggested that those who pocketed gains after the market’s surge to all-time highs earlier this week scouted for buying opportunities outside of overbought blue chips.

The day’s most actively traded stock was Belle, which fell by 4.81 percent to P5.14. Affiliate LR also slumped by 7.91 percent to P8.50. Investors sold on news that they signed a deal with Macau casino giant Melco Crown Entertainment to invest up to $580 million in their casino consortium. On the other hand, SM Investments inched up by 0.4 percent to P745 per share.

Apart from Belle, the index stocks that contributed to the PSEi’s decline were PLDT, MPI, BDO, Megaworld, AGI, ALI, AC and AP.

Security Bank, GT Capital and FPH also succumbed to profit-taking

Aside from SMIC, a 1.2 percent gain by BPI tempered the PSEi’s decline.

On the other hand, the day’s notable gainers were Bloomberry (+2.55 percent), Philodrill (+5.77 percent), Lepanto B (+6.08 percent) and Calata (+5.63 percent).