by Prime Sarmiento

    MANILA, Nov. 11 (Xinhua) -- Philex Mining Corp. is emerging to be the next darling of the stock market as some of the country's most prominent businessmen competing to control the Philippines' biggest and most profitable mining firm.

    Wednesday, the main-share Philippine Stock Exchange composite surged to a 19-month high to close 1.68 percent higher at 3,047.14.The buying frenzy over Philex, which accounted for a third of the nearly 120 million U.S. dollars worth of turnover at the local bourse, is one of the key factors that pushed the index to cross the crucial 3,000 point-barrier.

    Philex settled at 19.50 pesos (0.42 U.S. dollar) apiece Wednesday, its highest close since the firm was listed in 1994.

    "If the rumored group will continue to acquire more shares, then why will Philex' shares go down? There is still a strong demand coming from foreign entities and this will not likely slow down," one analyst said.

    Investors, he said, can either ride along with the play and earn huge money or put their money elsewhere where the risk is lower.

    "This is not a fundamental or technical play since the stock is already overvalued and its chart is making a new history. This is an ownership play similar to what happened to Manila Electric Co.(Meralco)," he said.

    The looming corporate duel over Philex mirrors the recent battle over Meralco which saw businessmen Manuel V. Pangilinan and Ramon S. Ang, president of San Miguel Corp.(SMC), Southeast Asia's biggest food and beverage conglomerate, dueling for control over the Philippines biggest power retailer.

    Pangilinan, who leads the group of businessmen representing Hong Kong-based investment firm First Pacific Co. Ltd., gained a controlling stake in Meralco. He is the chairman of Philex and is now busy defending First Pacific's 22 percent stake in Philex, as several groups are keen on expanding their stake in the company.

    "First Pacific already has a significant bloc in Philex and is inclined to protect its interest," AB Capital Securities said in its weekly commentary. The local brokerage added that with several groups "looking to increase their shareholdings, Philex prices may stay high."

    These include the Government Service Insurance System (GSIS) and the business group led by former Philippine Trade Secretary Roberto Ongpin.

    SMC's Ang has earlier said that he's interested to buy the stake held by the Social Security System (SSS) in Philex. The state-owned pension fund has a 22 percent stake in Philex.

    Ongpin's Golden Media Corp. disclosed last week that it had purchased 50 million additional shares in Philex, raising its 0.56percent stake in the company to 1 percent. Prior to this purchase, Ongpin, who sits as vice chairman of Philex's executive committee, was estimated to own at least 15 percent of Philex's total shareholdings.

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