Written by Madelaine B. Miraflor Published on 15 February 2013
The accident in a mine operated by listed Semirara Mining Corp., which left five miners dead as of Thursday evening, as well as profit taking at the latter part of yesterday’s trading caused the market to decline after piercing 6,500-point territory on Wednesday.
According to Freya Natividad of 2TradeAsia.com, the decline in the market was partly caused by the accident at Semirara’s mine in Caluya, Antique, since the mining firm is a blue-chip issue.
“The local market declined 14 points as investors retested after the benchmark index hit the 6,500 mark,” she said.
“Several participants also continued to digest leads from the Philippine economic briefing held on Wednesday,” Natividad added.
She mentioned that the decline was partly caused by the losing trend in some overseas markets, specifying that the Dow Jones went down around 35 points.
The Philippine Stock Exchange index (PSEi) on Thursday retreated by 0.22 percent, or 14.58 points to 6,513.41, while the broader all-shares declined by 0.07 percent, or 2.80 points to close at 4,091.38.
Most of the sub-indices also ended in the red, led by mining and oil, which dipped 1.64 percent, or 370.03 points to 22,234.42, mainly on the weight of Semirara mining accident.
The holding firms counter was also down by 0.61 percent, or 34.95 points to 5,695.71, while services fell 0.29 percent, or 5.65 points to close at 1,917.96. Financials decreased by 0.17 percent, or 2.88 points to 1,715.48.
Industrial, on the other hand, managed to register an increase, rising 0.81 percent, or 79.07 points to 9,883.77, while property was up 0.04 percent, or 1.11 points to 2,650.79.
Losers beat gainers, 84 to 72, while 56 shares were unchanged.
On Wednesday, the PSEi surged to a new record, rising 1.05 percent or 68.06 points to 6,527.99, while the broader all-shares index closed 0.70 percent higher, or 28.64 points to 4,094.18.
“The PSEi made a sustained break of the 6,500 resistance, where it failed three times prior, a little past the half-hour of trades. The industry leader was the third top issue in the value turnover list.
The low interest rate regime and the much improved outlook for domestic economic growth has been a boon to the banks. The major banks’ share prices have added between 6.2 percent to 17 percent on the year-to-date,” Jun Calaycay of Accord Capital Equities said previously. source
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