THE Mining and Oil index surged on Wednesday, the only sector on the Philippine Stock Exchange that closed in the green, after the Commission on Appointments (CA) rejected the appointment of Gina Lopez as Environment secretary.
The Mining and Oil index gained 2.73 percent or 339.02 points to close at 12,772.82, but the bellwether PSEi declined by 0.27 percent or 20.84 points to 7,682.26. The broader All Shares dipped by 0.03 percent or 1.45 points to finish at 4,603.12.
“Definitely it was the rejection of Gina Lopez as the Environment secretary that made the price to react. On the index, as a whole, the PSEi—because there’s the resistance at 7800—it was a technical resistant that caused the market to take profit,” Harry Liu, president of Summit Securities, Inc. told The Manila Times.
“There is no new development yet, so the market took a technical cue to taking profit,” he said.
The mining and oil industry is now expected to stabilize in the next few days until a new Environment chief is appointed.
“In the meantime, the market is still going through a medium-term consolidation, waiting for new global news and local news. Other than that, everything is stable,” Liu said.
Regina Capital Corp. Managing Director Luis Limlingan said analysts “will probably be recalculating many factors such as which mining companies can resume operations and when soonest, how much supply can be met soon and how prices will adjust.”
On Wednesday, Semirara Mining and Power Corp. rose by 2.18 percent and Nickel Asia Corp. by 1.05 percent.
Apex Mining Corp., Benguet Corp., Lepanto Consolidated Mining Company and Manila Mining Corp. also registered significant gains.