Mining, oil stocks buck downtrend
MANILA, Philippines—The local stock market dipped Friday on global growth concerns but the mining/oil counter outperformed on speculation that a much-awaited mining executive order was finally forthcoming.
The main-share Philippine Stock Exchange index slipped 7.3 points or 0.14 percent to close at 5,362.68. The local index retreated from Thursday’s record finish, in line with global markets as the seemingly coordinated interest rate cuts by China, European Central Bank and Bank of England implied worries on the pace of global growth.
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, the mining/oil counter surged 2.83 percent on speculation that a much-awaited mining executive order laying down the framework on mining for the rest of this administration had been finalized. The mining industry was speculating that Malacañang would announce very soon an EO that may contain positive surprises for the industry.
For the week, the PSEi gained 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 outperforming mining/oil counter, holding firms also stayed afloat yesterday.
Value turnover amounted to P7.43 billion. Despite the overall
index decline, there were 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 4.81 percent to P5.14 a share. Affiliate LR also slumped 7.91 percent to P8.50. Investors sold on news that the firms have 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 0.4 percent to P745.
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.
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). Doris C. Dumlao
