Drop in mining stocks dampens market

MANILA, Philippines – Share prices retreated yesterday, dampened by the plunge in mining stocks amid the continued crackdown of the Department of Environment and Natural Resources (DENR) on mining companies.

Expectations that second quarter economic growth would be higher were not enough to lift the market.

The benchmark Philippine Stock Exchange index retreated 37.19 points, or 0.46 percent, to end at 7,946.19, while the broader All Shares index declined 16.49 points or 0.35 percent to finish at 4,697.11.

Most of the indexes also closed in negative territory except for the services index, which increased 3.01 points or 0.18 percent to end at 1,618.54.

On the other hand, the Mining and Oil index plunged to 10,129.48, down 174.81 points or 1.69 percent.

Total value turnover reached P9.47 billion. Advancing stocks numbered 97 while decliners stood at 87. Fifty four stocks were left unchanged.

Analysts said the index was again dragged by the decline in the shares of Semirara Mining and Power Corp.’s which closed lower by 4.07 percent to finish at P103.70.  This is amid the risk that its environmental clearance certificate may be cancelled by the Department of Environment and Natural Resources (DENR).

Despite the decline, Justino Calaycay said there is much to hope for in the final four months of the year.

“Solely on the basis of the fundamentals, both on a company and broad economy levels, there is much to hope for in the final four months of the year.