Philippine Stock Exchange Weekly Report (31 January - 4 February 2000)

After five days of continuous drop, the stock market made a rebound on account of selective buying of stocks with good prospects as share prices fell to bargain levels. Investors, however, continued to trade with prudence, as the market remained feeble amidst the uncertainties in the political and economic fronts. Pending the result of the controversial BW Resource Corporation's investigation, investors were also wary over the rise in oil prices, which could further weigh down on interest and inflation rates. The market also reflected its reaction to the US Federal Open Market Committee's decision to raise the US rate within expectations. Consequently, the Composite Index advanced by 2.00% or 39.47 points to close the week at 2,008.86 points. Against the backdrop of an improved economy as shown by the favourable gross national product (GNP) of 3.6% from 0.10% and gross domestic product (GDP) of 3.2% in 1999 from a drop of 0.50 of the previous year, some investors were drawn into accumulating selected shares which have gone down to attractive levels. The growth enticed investors to the equities as the assenting full year data asserted hopes that a ground of recovery is in the offing. Nonetheless, the overall sentiment continued to border on the cautious side ahead of the US Fed meeting and the Chinese New Year. These factors, as compounded with the absence of fresh stories to move the market, led the investors to sidestep and maintain a wait-and-see attitude. The decision of oil companies to increase oil prices further effected a sluggish mood on concerns about its possible impact on inflation. All these softened investors' stance in the stock market and capped its further move upwards. Conspicuously absent from the local market were foreign investors as mirrored on the net selling transactions of foreign trades all through the week, totalling PhP1.35 billion. Except for the oil counter that tumbled from its previous level, the rest of the sectors improved as led by mining, which grew by 13.98% to 2,267.76 index points. Gainers were banks and financial services, which grew by 5.12% to 808.34; commercial-industrial which gathered 1.57% to 2,806.70; and property which built up by 1.08% to 679.38. The mining sector was the biggest gainer as propped up by mining index stocks like Lepanto Consolidated Company (LC), Abra Mining & Industrial Corporation (AR); and Atlas Consolidated Mining & Development Corporation (AT). LC class A moved up by 15.15% to PhP0.38 from PhP0.33 per share while LC class B grew 11.11% to PhP0.40 from PhP0.36 per share; AR went up by 15.79% to PhP0.011; AT increased by 16.00% to PhP2.90 per share. Other mining stocks likewise rose: Omico Corporation gained 10% to PhP0.022; Island Mining and Industrial Corporation rose 66.67% to PhP0.075; Manila Mining Corporation class A advanced by 50.00% toPhP0.015 while class B improved by 60.00% to PhP0.016; and Apex Mining Company grew by 11.76% to PhP0.0095 per share.