Philippines share prices closed 0.84 percent higher on Thursday on strong interest in mining stocks after metals rose to fresh records in US trade overnight, dealers said. A fresh wave of buying in blue chips also lifted the market as foreign funds continued to pour in, they said.
The composite index closed up 21.30 points at 2,550.79 after trading between 2,529.49 and 2,553.99. Volume was 6.5 billion shares worth 3.2 billion pesos (62.7 million dollars).
The broader all-shares index advanced 19.05 points to 1,576.00. Gainers led losers 92 to 27, with 33 stocks unchanged. "Conventional wisdom dictates that a correction would ensue once prices reach expensive levels but we can't go against the flow of the market. Funds continue to pour in," said Oliver Plana of Asiasec Equities Inc.
The market has gained over 20 percent since the start of the year, with its rise accelerating in the past two weeks amid hopes of a credit-rating upgrade as the country's fiscal situation improves. Online brokerage firm 2TradeAsia.com said mining and commodity stocks grabbed the limelight as gold futures rose to multi-decade highs with investors looking to hedge against inflation as oil prices rise.
The mining and oil sub-index climbed 403.59 points to 5,849.90.
Among miners, Philex Mining Corp A, limited to Filipinos, gained 50 centavos to 5.30 pesos and Philex B, which foreign investors can buy, advanced 55 centavos to 5.30 pesos. Semirara Mining Corp gained 50 centavos to 30.50 pesos. Top-traded Bank of the Philippine Islands was up two pesos at 70.
Philippine Long Distance Telephone recovered from a two-day slide to close 15 pesos higher at 2,145 pesos. Ayala Land Inc fell 25 centavos to 14.50 pesos but parent Ayala Corp gained 2.50 pesos at 457.50 ahead of its first-quarter results due out Friday. San Miguel Corp A and B shares were unchanged at 64 pesos and 83 pesos, respectively.