A study on the impact of changes in the market values of gold, silver and copper on the changes in stock returns of mining firms listed in the Philippine Stock Exchange from January 2001 to May 2006

• Main Authors: Conde, Gino Gabriel P., Karagdag, Jose Antonio S., Ozaeta, Lendle Joseph R., Pua, Marie Christine U.
• Format: text
• Language: English
• Published: Animo Repository 2006
• Subjects: Mineral industries > Philippines; Mining corporations > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18313
• Institution: De La Salle University

For the past few years the mining industry in the Philippines has been very inactive in the stock market. The value of metals was not volatile. With intentions to protect the country's natural resources, the government formed laws that did not allow foreign investors to invest in the local mining industry. Without foreign investors to raise funds or capital, local mining firms have resorted to availing huge loans to meet their expenses. As a result of availing these huge loans, the mining firms in the Philippines have incurred losses which until now they are still trying to pay off. But recently, the Philippine government has allowed the entry of foreign investors in the local mining industry with the liberalization of the mining act. With the rise of the prices of metals in the world market, stocks of mining firms seem to also increase. This also gave way for the researchers to conduct the study and to know whether the changes in these metals really affect the changes in the stock returns of mining firms. The study mainly focused on testing the two variables and determined whether they really have a relationship using the regression analysis. In the succeeding chapters of this paper, the researchers discussed the nature of mining firms in terms of their operations and mainly, the production of gold, silver and copper. This is because despite the good performance of mining firms' stock prices, many of them have still been reporting net losses, others have stopped their operations for they no longer have sufficient funds, while some are still paying off their debts.