Market advances; Semirara, DMCI up

The stock market rose Thursday on bargain-hunting, with Semirara Mining and Power Corp. and parent DMCI Holdings Inc. lifting the index on investor sentiment that the two issues have been oversold.

The Philippine Stock Exchange Index gained 17.60 points, or 0.2 percent, to 7,653.22 on a value turnover of P7.3 billion. Gainers beat losers, 95 to 76, with 45 issues unchanged.

Semirara, the biggest coal producer, rallied 6.2 percent to P118, while DMCI climbed 4.9 percent to P12.50.

Semirara said Wednesday it stopped coal exports to prioritize local consumers following the suspension of its mining operations in Caluya, Antique.

The Energy Department ordered the suspension of Semirara’s coal mining contract on Semirara Island after nine miners died in a landslide last Friday in an open-pit mine.

The landslide, which occurred in a reclaimed area of the northeastern part of the island, was the second major disaster to hit Semirara, owned by DMCI. In February 2013, seven miners were killed when the west wall of the pit collapsed and trapped 13 miners under it.

Semirara said it had notified foreign customers that it could not schedule further shipments until the department reached a decision on the suspension of its mining operations.

Universal Robina Corp., the largest snack food maker, advanced 2 percent to P186.70, while Jollibee Fooods Corp., the biggest fastfood chain, added 1.2 percent to P190.30.

Cebu Air Inc., operator of the largest budget carrier, rose 2 percent to P91.80.

The rest of Asian markets mostly rose Thursday, with Tokyo lifted by a stronger dollar as investors position for an expected US rate hike and Shanghai extending a recent rally to six sessions.

The euro also got a lift as Greece took another step closer to securing a bailout after lawmakers agreed to more tough austerity measures.

Tokyo rose 0.44 percent, or 90.28 points, to 20,683.95 and in late trade Hong Kong added 0.57 percent while Shanghai rallied 2.22 percent.

Seoul ended marginally higher, adding 0.34 points to 2,065.07 but Sydney lost 0.43 percent, or 24.3 points, to close at 5,590.3.

After Wednesday’s losses, the dollar resumed its upward trajectory following a strong batch of housing data that reinforces expectations that the Federal Reserve will lift rates soon.

Official figures showed sales of existing homes in the US surged in June to their highest level in more than eight years and prices hit a record high.

“It’s not determined yet whether the US rate hikes will be in September or December, but the housing data strengthens the case for a September hike a little,” Mitsushige Akino, executive officer at Ichiyoshi Asset Management Co., told Bloomberg News.

In Tokyo, the dollar bought 124.04 yen against 123.96 yen in New York.

The euro advanced after Greek lawmakers passed legislation on more reforms needed to help unlock a huge international bailout. The bill won 230 votes out of the 298 members of parliament present, following hours of debate.

The single currency fetched $1.0937 and 135.64 yen, against $1.0926 and 135.44 yen. 

Source: The Manila Standard