Stock Market



By Victor V. Saulon
Sub-Editor


Stocks tread carefully, miners clobbered




Posted on August 13, 2016


LOCAL shares barely budged on Friday, with the Philippine Stock Exchange index (PSEi) closing marginally lower by 25.49 points or 0.32% to 7,955.86 after investors factored in a fresh stream of second quarter corporate earnings data.

“The market is trying to balance out all the news and development as far as the present month is concerned. Financial reports are coming in. Some are reporting very good results... and projections,” said Harry G. Liu, president of Summit Securities, Inc.

The all-shares index lost 19.59 points or 0.41% to finish at 4,722.82. Except for services, which gained 36.92 points or 2.38% to 1,590.89, all the other sectoral indices ended in the red.

Mining and oil stocks led the retreat, as they lost 433.75 points or 4.18% to 9,949.77. This came after mining shares continued a downward trek amid lingering uncertainties over government policies with the recent actions by the Department of Environment and Natural Resources (DENR).

The other day, the DENR threatened to revoke the permit of the open-pit mine in Antique of listed coal miner Semirara Mining Power Corp. (SMPC). The country’s biggest coal producer saw its shares fall by 7.52% to P100.80 per share on Friday.

SMPC said it had “been fully complying with all relevant laws and regulations” and that its mining and environment protocols also conform with the conditions of its environment compliance certificates.

“We hope that our company will be accorded due process throughout any pre- and formal audit process of the government,” it said.

SMPC’s parent firm DMCI Holdings, Inc. also suffered a 4.06% fall in its share price to P12.28 from P12.80 previously even as it reported that one of its subsidiaries, DMCI Homes, posted a 25% rise in first-half sales and reservations.

Financials lost 28.45 points or 1.53% to 1,835.56. Holding firms followed with a 62.11-point drop or 0.79% to 7,784.13. Property gave up 17.23 points or 0.47% to 3,645.74 while industrial stocks lost 40.41 points or 0.33% to 12,253.10.

“It’s still continuing a medium term sideways [movement],” Mr. Liu said. “It may be due to the August month, where there are less demand from Asian managers, and not because there is bad news.”

The total value of trading yesterday dropped to P10.1 billion from P17.56 billion the other day. Losers outnumbered gainers, at 116 against 78, while 40 stocks closed unchanged.

Foreign investors sold more shares than they bought, resulting in a net selling of P73.2 million worth of stocks. Total foreign trading reached P10.28 billion.