Philippine stocks slip further on fresh Mideast concerns

Philippine shares slipped further on Tuesday as investor sentiment soured on worsening tensions in the Middle East, which have led to higher global oil prices.

The Philippine Stock Exchange index (PSEi) fell by 0.15% or 9.70 points to close at 6,256.02, while the broader all shares index went down by 0.09% or 3.29 points to end at 3,379.94.

“The local bourse ended slightly lower as investors remained cautious amid the ongoing US-Iran conflict and renewed gains in oil prices, which weighed on market sentiment. Traders largely stayed on the sidelines resulting in thin volume for today’s session, awaiting further geopolitical developments before taking significant positions,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The local market’s sideways movement today ended in the negative territory as worries over the US-Iran tensions and their upward effect on global oil prices weighed on investors’ sentiment,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message. “Trading was still tepid … as many stayed on the sidelines amid the downside risks brought by the Middle East conflict.”

Stocks yoyoed between gains and losses and oil hit a one-month high in Asian trading on Tuesday after President Donald J. Trump said the US was reinstating its blockade of Iranian shipping and would collect a 20% fee on cargo traversing the Strait of Hormuz, Reuters reported.

Following a volatile session, MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2%, as a rebound for South Korean shares offset declines in Taiwan. S&P 500 e-mini futures nudged 0.1% higher.

Brent crude futures climbed 2.6% to USD 85.49 a barrel after earlier hitting their highest since mid-June at USD 85.64.

Sectoral indices ended mixed on Tuesday. Mining and oil rose by 1.3% or 184.88 points to 14,404.56; services increased by 0.29% or 10.03 points to 3,444.59; and industrials went up by 0.06% or 5.74 points to 8,298.12.

Meanwhile, holding firms declined by 0.84% or 36.88 points to 4,341.33; property dropped by 0.34% or 6.53 points to 1,880.86; and financials went down by 0.16% or 3.08 points to 1,901.37.

Decliners outnumbered advancers, 109 to 82, while 49 names were unchanged.

“Emperador, Inc. was the day’s index leader, climbing 1.55% to PHP 15.70. JG Summit Holdings, Inc. was the main index laggard, falling 3.19% to PHP 24.30,” Mr. Tantiangco said.

Value turnover decreased to PHP 5.28 billion on Tuesday with 673.92 million shares traded from the PHP 16.82 billion with 1.15 billion issues that changed hands on Monday.

Net foreign buying was at P229.80 million, a turnaround from the PHP 673.06 million in net selling recorded in the previous session. — Alexandria Grace C. Magno with Reuters