Mining woes drag down stocks

MANILA, Philippines - Mining stocks nosedived yesterday after Environment and Natural Resources Secretary Gina Lopez announced the closure of 21 mining companies, bringing the main composite index to negative territory.

The benchmark Philippine Stock Exchange index retreated 1.54 points, or 0.02 percent, to settle at 7,225.91 and so did the broader All Shares index which shed 0.08 percent to end at 4,365.71.

Total value turnover reached P5.942 billion as decliners outnumbered advancing stocks, 102 to 80 while 44 issues were left unchanged.

Of the 21 firms ordered closed, listed mining companies saw their share prices plunge. These are Benguet Corp Nickel Mines, which declined to P1.90 per share or down 10.38 percent while Nickel Asia Corp. also saw it price go down 0.58 percent to P6.81 per share after its subsidiary Hinatuan Mining was also ordered to shut down.

Another listed company, Marcventures saw an 11.11 percent drop in its share price to P1.84.

Meanwhile, the DENR also ordered the suspension of Lepanto,   Citinickel and DMCI Mining Co.’s Berong Nickel.   Other companies  which operations are suspended  by the DENR are Ore Asia and Oceanagold.

The mining and oil index plunged 200.73 points to 11,951.84. 

Luis Limlingan, managing director of Regina Capital said Philippine markets continued to trade flat as the Federal Reserve painted a comparatively positive picture of the US economy which suggests it remains on track to tighten monetary policy this year although it offered no clear signal on the timing of the next rate move.