Share prices rally on OPEC deal

Share prices rallied yesterday as investors welcomed the decision of the Organization of Petrolem Exporting Countries (OPEC) to curb oil output.

The Philippine Stock Exchange index bounced back to 7,714.86 level yesterday, surging 127.90 points or 1.69 percent, while the broader All Shares index also rallied to 4,573.39, up 55.98 points or 1.24 percent.

Analysts said the market cheered the move of the OPEC to cap production even as this would mean higher oil prices.

OPEC members reached the preliminary agreement at a summit in Algiers.

“For a second day in a row, the market was blanketed by a cheery mood – despite the prospect of higher oil prices in light of a preliminary agreement by OPEC to cap production at a summit in Algiers overnight,” said Justino Calaycay, analyst at A&A Securities.

All the other counters closed in positive territory with the mining and oil index still among the biggest gainers, rising 1.38 percent, or 149.79 points to finish at 11,009.92.

“The mining and oil sector – obviously pushed by oil entities – posted the biggest points gain and second best, percentage-wise behind the property sector,” Calaycay said.

The day before, the Department of Environment and Natural Resources released its audit findings on metallic miners where 20 companies were given seven days to address the audit findings while 10 remained under suspension. By IRIS GONZALES