Index retreats anew on weak mining sector

MANILA, Philippines - Local share prices retreated anew yesterday on the back of weaknesses in the mining sector.

The Philippine Stock Exchange index (PSEi) shed 0.40 percent or 27.53 points to 6,786.42, while the broader all shares index dropped 0.40 percent or 17.14 points to 4,217.74.

All counters, save for industrial firms that inched up 0.19 percent or 18.62 points to 9,979.58, ended in negative territory.

The decline was paced by mining and oil firms that lost 1.70 percent or 373.40 points to 21,564.28. Specifically, the subindex was dragged by Philex Mining Corp. which recorded a 5.23-percent drop or P1 to settle at 18.10 apiece following the announcement of a P12.3-billion stock rights offering.

“The market is in a slight correction but not the massive correction people are expecting,” said Roberto Juanchito T. Dispo, president of the Metrobank Group’s First Metro Investment Corp. (FMIC).

But Dispo said foreigners still buy stocks as part of repositioning their portfolio during dips and corrections.

Turnover value rose to P18.24 billion from P10.99 billion on Monday. Decliners outplayed advancers, 106 to 52, while 50 stocks did not change.

The local bourse bucked anew the bullishness in Wall Street, which rose anew due to strong US jobs data.

The Dow Jones industrial average climbed 0.35 percent or 50.22 points to 14,447.29 while the broader Standard & Poor’s 500 index added 0.32 percent or 5.04 points to 1,556.22.