RP stocks rise on higher gold prices

Philippine share prices closed higher on Monday, driven by gains in the mining and oil subsector of the index, which cheered a $7-gain in gold prices, analysts said. The benchmark Philippine Stock Exchange index rose 25.02 points or 0.70 percent to 3,597.92 while the all-stock index gained 17.46 points or 0.78 percent at 2,244.17. Gainers dominated losers 84 to 23 while 53 stocks were unchanged. Volume traded reached 3.19 billion valued at P4.11 billion. "The market today was led by the mining sector. Gold went up by $7 to $742," Grace Cerdenia, managing director of online stock brokerage firm 2TradeAsia said. The mining and oil subsector of the index soared 209.84 points or 2.85 percent to 7,581.94. Cerdenia said investors are also unfazed by political jitters generated by allegations that a government deal with Chinese company ZTE Corp. brokered by corrupt officials. "The Philippines does not have a monopoly on questions regarding a contract that it entered into. The issue is not enough to alter the long-term positive view of fund managers on equities market," she said. Besides this, the market, Cerdenia said, is also anticipating an "easing on monetary policies." The Monetary Board is set to meet on Thursday (Oct. 4) and analysts are expecting the Bangko Sentral ng Pilipinas to cut interest rates following the recent move by the US Federal Reserve to cut rates by 50 basis points. On Monday's trading, Metropolitan Bank & Trust Co., the country's largest lender in terms of assets, was flat at P56. Mining exploration company Geograce Resources Philippines Inc. added P0.19 or 8.05 percent to P2.55. Developer Megaworld Corp. climbed P0.40 or 11.59 percent to P3.85. Globe Telecom Inc., the country's second-largest telecommunications company, dropped P10 or 0.68 percent to P1,460. Property company Ayala Land Inc. rose by P0.25 or 1.54 percent to P16.50. - Cheryl Arcibal, GMANews.TV