The Philippine Stock Exchange changed the composition of the index to take out illiquid stocks in order to reflect the real movement of the market.
Last week, the Phisix gained 26 points or 1.3 percent to end at 2,109 — still above the key 2100 point support, indicating sentiment remains bullish and that investors are just waiting for another opportunity to resume building up their stock portfolios.
Accord Capital Equities Inc.’s Ron Rodrigo said investors are expected to resume accumulating certain stocks when the market resumes trade tomorrow. Financial markets are closed today for a public holiday.
AB Capital Securities Inc. said investors are awaiting the release of third quarter GDP results. The market consensus forecast for economic growth for the third quarter is 4.9 percent.
"Investors are closing out a stellar November, helping stocks and the peso to have a strong finishing kick for 2005. The markets are relieved that we are finally getting back on track as far as the government’s fiscal targets are concerned," AB Capital Securities said.
"Recent surveys have shown that the business sector is growing more confident and consumers are now a bit more willing to spend," AB Capital Securities added.
Traders said the market’s support remains at 2,100, while resistance is at 2,130.
AB Capital Securities said mining issues have been taking the centerstage with the mining index gaining 5.5 percent last year, aided by the continued rise in gold and copper prices in the world market.
The renewed strong interest in mining stocks was an offshoot of a Supreme Court ruling last year that allowed foreigners to control mines in the Philippines.
Among the notable gainers from the gold rally is Philex, which appreciated 10 percent to end at P1.50 while the "A" shares gained seven percent to P1.24. Interest has been strong because Philex will be among the five new entrants in the re-constructed Phisix come Dec. 1. It also reversed its net losses in the nine months ending September this year and secured fresh credit for enhancing its output.
Since the passage of the ruling, several companies have revived their mining operations. For one, Atlas Consolidated Mining Development Corp., which used to be Southeast Asia’s largest copper mine, is planning to raise $125 million to $170 million to re-start its mining operations. Carmen Copper Corp., a subsidiary of Atlas incorporated last September 2004, has recently disclosed its plans to go public either by year-end or next year.