Philippine stocks eke out gains, track Wall Street’s rise

Philippine stocks inched higher on Tuesday amid positive spillovers from Wall Street, although the market remained cautious due to the ongoing conflict in the Middle East.

The bellwether Philippine Stock Exchange index (PSEi) rose by 0.16% or 10.61 points to end at 6,369.19, while the broader all shares index went up by 0.4% or 15.41 points to 3,783.86.

“The local market bounced with positive cues from Wall Street helping in the climb. Investors also digested the Philippines’ overseas Filipinos’ cash remittance data for April, which posted a 4% growth,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message. “Gains were tempered, however, as concerns over the Israel-Iran conflict and their economic repercussions lingered.”

“Philippine and US stocks rebounded as hopes grew that the Israel-Iran conflict would stay contained, easing oil price concerns,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Wall Street closed higher on Monday on hopes that the Middle East conflict would not escalate further. The Dow Jones Industrial Average rose by 0.75% or 317.30 points to 42,515.09; the S&P 500 improved by 0.94% or 56.14 points to 6,033.11; and the Nasdaq Composite gained by 1.52% or 294.38 points to 19,701.21.

US President Donald J. Trump said he wanted a “real end” to the nuclear problem with Iran and indicated he may send senior American officials to meet with the Islamic Republic as the Israel-Iran air war raged for a fifth straight day, Reuters reported.

Washington has said Mr. Trump was still aiming for a nuclear deal with Iran, even as the military confrontation unfolds.

World leaders meeting at the Group of Seven summit called for a de-escalation of the worst-ever conflict between the regional foes, saying Iran was a source of instability and must never have a nuclear weapon while affirming Israel’s right to defend itself.

Back home, almost all sectoral indices closed higher on Tuesday. Industrials rose by 1.18% or 106.35 points to 9,109.64; property went up by 0.3% or 6.74 points to 2,247.07; holding firms climbed by 0.27% or 15.10 points to 5,438.76; services increased by 0.21% or 4.78 points to 2,224.82; and mining and oil gained 0.14% or 14.29 points to end at 10,055.13.

Meanwhile, financials slipped by 0.24% or 5.71 points to 2,344.11.

“China Banking Corp. was the top index gainer, climbing 3.37% to PHP 67.45. Bloomberry Resorts Corp. was at the bottom, falling 2.33% to PHP 5.88,” Mr. Tantiangco said.

Value turnover declined to PHP 5.94 billion on Tuesday with 2.11 billion issues traded from the PHP 8.82 billion with 1.07 billion shares exchanged on Monday.

Advancers bested decliners, 124 versus 82, while 42 names were unchanged.

Net foreign selling declined to PHP 15.05 million on Tuesday from PHP 2.74 billion on Monday. — Revin Mikhael D. Ochave with Reuters