PHILIPPINE stocks rose Friday, led by Philex Mining Corp. and other metal producers, after gold exceeded $700 an ounce for the first time in more than a year.

“Gold is giving mining stocks a lift,’’ said Peter Lee, senior investment officer at IGC Securities Inc. “It’s causing investors to again take a look at the sector. ”

Ayala Land Inc. and Megaworld Corp. climbed after US retail sales increased, easing concern a housing slump in the world’s biggest overseas market will hurt earnings.

The Philippine Stock Exchange index gained 6.44, or 0.2 percent, to 3,332.97 at the close, trimming this week’s loss to 1 percent. The measure climbed 17 percent in the previous two weeks.

Limiting the index’s gain Friday, SM Prime Holdings Inc. led consumer stocks lower after a government official said economic growth might slow this quarter because of dry weather.

Philex, the nation’s largest mining company, jumped 70 centavos, or 13 percent, to P6.20, its biggest advance since June 2006. Class A shares of Apex Mining Co., equity reserved for Filipinos in the Philippine unit of Crew Gold Corp., advanced 40 centavos, or 8.5 percent, to P5.10. Its Class B shares, which have no ownership restrictions, surged 50 centavos, or 11 percent, to P5.10.

Gold futures for December delivery rose $13.90, or 2 percent, to $704.60 an ounce in New York, boosted by increased demand from investors buying the metal to protect against further declines in the dollar. It’s the first time gold exceeded $700 since May 2006.

Class A shares of Lepanto Consolidated Mining Co., a silver gold producer, gained one centavo, or 3.9 percent, to 27, a six-week high. Its Class B shares added 2 centavos, or 6.9 percent, to 31, rounding a 19-percent gain this week—the biggest five-day gain since February.

Ayala Land, the nation’s biggest property developer, added 25 centavos, or 1.8 percent, to P14.25. Megaworld, the second-biggest property builder by market value, climbed 5 centavos, or 1.5 percent, to P3.40.

Retail sales in the US increased 2.9 percent in August, the International Council of Shopping Centers said Thursday, exceeding the group’s forecast for as much as 2.5 percent.

Ayala Land and Megaworld source at least 20 percent of their home sales from Filipinos working abroad, with the US providing a key market. The US supplies half of the funds sent home by Filipinos working abroad, spurring home purchases.

Separately, SM Prime, the nation’s largest shopping-mall operator, fell 25 centavos, or 2.2 percent, to P11.25. Class A shares of San Miguel Corp., the biggest food and drinks company, lost 50 centavos, or 0.8 percent, to P62. Its Class B shares fell 50 centavos, or 0.8 percent, to P64.50

Economic growth may slow from the second quarter’s 7.5-percent expansion, the fastest in two decades, on lower farm output brought about by the drought, Economic Planning Director Dennis Arroyo said Thursday after the market shut. Consumer spending make up 70 percent of the economy.

Shares worth 3.53 billion were traded, 36- percent less than the six-month daily average. Gainers beat losers 62 to 39, with 51 stocks unchanged in the broader market.  

**** 

STOCK MARKET OUTLOOK         

By Honey Madrilejos-Reyes 

LAST week: The benchmark stock index lost 32.32 points, or 0.96 percent, week-on-week to 3,332.97 as most investors stayed on the sidelines on lack of significant developments. 

THIS week: Experts at AB Capital Online Securities said the market can’t heave a sigh of relief yet as a looming uncertainty on the domestic politics may dampen sentiment.

“The market has not priced in the emerging risks related to [former] President Joseph Estrada’s plunder case verdict. The uncertainty induced by external factors, such as unwinding US subprime woes, would now be partly replaced by domestic political concerns,” they said.

Market players are unlikely to make any aggressive moves this week, they added. “Investors will be on full alert… for any sign of turmoil both on the domestic political front and… the international financial markets. The market will be taking its cue on how the jobs data will turn out in the US and how the public will react to the verdict on Estrada’s plunder case.

“The market has been trying to hold up above the 3,300 support level, driven by the robust performance of the local economy. While our daily momentum indicators have turned up and are very close to an overbought condition, the longer-term weekly data continues to remain relatively low but well above prior major market lows,” they explained. 

STOCKS to watch: Meanwhile, an analyst from a local brokerage firm said investors should stick to defensive positions, like utilities and consumer-related stocks, and be on the safe side in the face of looming uncertainties.

GOTIANUN-LED Filinvest Development Corp. is placing P1 billion of fresh equity into East West Banking Corp. for a boost capital that will enable the bank to upgrade itself from a commercial to a universal bank.

Globe allots $190M for Internet business

GLOBE Telecom intends to spend $190 million a year until 2009 to finance its broadband Internet initiatives, company president Gerardo Ablaza said.

PHILIPPINE stocks rose Friday, led by Philex Mining Corp. and other metal producers, after gold exceeded $700 an ounce for the first time in more than a year.

PHILIPPINE Seven Corp. was the biggest gainer last week in the list collated by the Philippine Stock Exchange (PSE) when it traded at P4.30 throughout the half-day session on September 3 on a thin volume of 26,000 shares, or a value turnover of P111,000.

In accompanying the President to Malaysia and Australia, Energy Secretary Angelo Reyes will have hopefully learned more about his job. Reyes’ marching order from day one (read: August 1) is to provide consumers, not just business, with cheap electricity.