Mining shares fall as gold pulls back

A sharp dip in mining stocks left the local bourse bleeding heavily on Wednesday as investors took cover as spot gold prices suffered the steepest drop in five years.

By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) lost 1.03 percent, or 62.66 points, to end at 6,030.87.

The broader All Shares Index also shed 0.83 percent, or 30.47 points, to close at 3,627.38.

A total of 12.06 billion shares worth P10.81 billion changed hands, stock exchange data showed.

The PSEi’s slip came as investors reacted to spot gold prices posting a steep 5-percent plunge on Wednesday, the highest single-day drop since 2020.

Mining companies took a heavy beating, falling by 5.91 percent.

Enrique Razon Jr.-led Apex Mining Co. Inc. plunged by 11.06 percent to P9.25 each, while Manuel Pangilinan-led Philex Mining Corp. tumbled by 7.95 percent to P8.45.

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OceanaGold (Philippines) Inc., which made its stock market debut last year, also fell by 7.93 percent to P26.70.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said investors struggled to find new catalysts, thus adding to the bleeding.

Universal Robina Corp. was the most actively traded stock as it shed 1.27 percent to P74 each. It was followed by: Ayala Land Inc., down 1.59 percent to P21.65; Apex Mining; International Container Terminal Services Inc., down 1.82 percent to P540; and BDO Unibank Inc., down 1.45 percent to P136 each.
Aside from Philex, other movers were: Puregold Price Club Inc., down 0.55 percent to P36; Manila Electric Co., down 1.03 percent to P575; OceanaGold; and Bank of the Philippine Islands, down 2.55 percent to P106.90 each.