PSEi sheds 1.03% on lackluster gold prices

Manila, Philippines – The Philippine Stock Exchange index (PSEi) reversed earlier gains as the lackluster performance of gold in the spot market dragged mining shares on Wednesday.

The bellwether index settled at 6,030.87, a sharp 1.03-percent drop that wiped out Tuesday’s gains proving that the one-day rally was short-lived.

Miners were the biggest losers after spot gold fell by over 5 percent overnight as investors who bet on this safe-haven metal booked profit.

Apex Mining Co. Inc. shed the most with an 11.06 percent loss at P9.25 per share. Philex Mining Corp. and OceanaGold (Philippines), Inc. lost 7.95 percent and 7.93 percent, respectively.

“The market went down as it struggled to find new catalysts, coupled with the depreciation of the PHP against the USD,” brokerage house Regina Capital said in a note to investors.

“Moreover, the dip in gold spot prices also contributed to the negative sentiment in the market,” it added.

The peso weakened to a near nine-month low of P58.41 against the dollar on Wednesday.

Stocks that declined outnumbered those that gained 3:1, while 48 were unchanged.