November 09, 2009

 

PHILEX yesterday ignored a brokerage firm’s downgrade, and spiked by over 14 percent amid increased signs that the largest mining company could be the next Meralco.

 

Roberto Ongpin

 

The share price closed at P18, buoyed by the previous day disclosure’s that Philex Mining vice chairman Roberto Ongpin acquired another 50 million shares at P12.50.

 

Still, Philex has already risen over 300 percent from a 52-week low of P4.15, prompting Philippine Equity Partners to cut its rating to "sell" from "buy."

 

"The recent spike in the stock price of Philex has already brought the stock above fair value," Philippine Equity analyst Philip Albert Felix told Bloomberg. Philex’s fair value is P15.30 a share, he said, adding that the brokerage was keeping its P11.30 12-month share price estimate.

 

The volume of Philex shares changing hands in the last seven days of trading alone is equivalent to nearly one-fourth of the entire 2008 trading volume for the same stock.

 

According to a stockbroker, signs point to the Government Service Insurance System doing the heavy buying rather than the group of PLDT and Philex chairman Manuel V. Pangilinan.