Strong mining stocks, blue chips buoy market

Share prices closed a volatile session 0.97 percent higher yesterday with miners outperforming, offsetting losses in some blue-chips, dealers said.

The composite index added 37.18 points to 3,861.38 after moving between 3,803.05 and 3,863.35.

The broader all-share index rose 24.97 points to 2,418.29.

There were 72 gainers and 46 decliners while 51 stocks were flat.

A total of 3.07 billion shares valued at P5.2 billion were traded.

Returning from a three-day weekend, investors snapped up mining stocks after strong rises in gold spot prices last Thursday, before a mild pullback the following day. Philippine markets were closed on Friday for a public holiday.

“Philex Mining and Lepanto Consolidated provide exposure to copper and gold, while Atlas Consolidated and Geograce Resources provide exposure to nickel,” Macquarie Securities said in a research note.

“We think these companies stand to benefit from the huge potential of the Philippine minerals industry as well as the government’s thrust to revitalize the sector,” it added.

But investors continued to lock-in gains in blue-chips that had rallied to record highs recently, including Philippine Long Distance Telephone Co. (PLDT).

“We’re in uncharted territory and investors are naturally cautious,” said Westlink Global Equities’ Rommel Macapagal.

“Investors are also divided between those who want to see a deeper correction before buying again and those who are eager to further build up their positions, given the strong peso and upbeat earnings outlook,” he said.

PLDT, the country’s biggest company by market value, fell P5 to 3,085.

Leading the mining and oil index’s solid 7.1-percent gain was Philex Mining, the country’s biggest miner by market value, which surged P1.10 to P9.30.

San Miguel A shares were steady at P61. The food and beverage group’s B shares rose P1 to P63. — AFP