PSEi climbs to 6,300 range as ME tensions ease

Philippine stocks rose on Monday to lift the main index back above the 6,300 line on optimism over a de-escalation in the Middle East (ME) conflict that led to a decline in global oil prices.

The Philippine Stock Exchange index (PSEi) went up by 0.54% or 33.89 points to close at 6,314.90, while the broader all shares index rose by 0.37% or 12.89 points to end at 3,435.37.

“The local bourse ended higher as bargain hunting persisted during the session amid easing geopolitical tensions following a strike halt in the Middle East. Investor sentiment was further supported by the sharp decline in crude oil prices, which helped ease concerns over inflationary pressures,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “Market participants remained cautiously optimistic as lower oil prices provided some relief to the broader market.”

“The local market rose this Monday as the US and Iran paused their attacks against each other over the weekend leading to a decline in oil prices,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco likewise said in a Viber message.

Global stock markets climbed on Monday as easing Middle East hostilities sent oil prices sharply lower and eased inflation worries ahead of a packed week of central bank meetings and earnings reports, Reuters reported.

Iran said on Sunday it would halt its own attacks as long as the United States did the same, with the US military reportedly concerned about dwindling supplies of ammunition. The lull in fighting over the Strait of Hormuz saw Brent crude slide 6.3% to USD 90.70 a barrel, while US crude dropped 5.7% to USD 84.12.

Stock markets across the globe staged a relief rally on Monday after intense fighting in the Middle East over the past week pushed oil prices to above USD 100 a barrel.

S&P 500 futures rose 0.9%, while Nasdaq futures jumped 1.5%. The MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3%.

Four of the six sectoral indices closed higher on Monday. Mining and oil rose by 1.11% or 176.14 points to 16,004.02; services increased by 0.98% or 33.55 points to 3,429.83; financials went up by 0.75% or 14.33 points to 1,921.89; and property climbed by 0.54% or 10.45 points to 1,924.03.

Meanwhile, industrials slipped by 0.04% or 3.65 points to 8,443.95, and holding firms edged down by 0.1% or 4.56 points to 4,421.86.

Advancers beat decliners, 94 to 75, while 67 names were unchanged.

“Monde Nissin Corp. was the top index gainer, jumping 5.51% to PHP 7.09. DigiPlus Interactive Corp. was the main index laggard, falling 1.87% to PHP 9.99,” Mr. Tantiangco said.

Value turnover decreased to PHP 4.81 billion on Monday with 448.08 million shares traded from the PHP 5.84 billion with 597.76 million issues that changed hands on Friday.

Net foreign selling rose to PHP 196.45 million from PHP 48.19 million in the previous session. — A.G.C. Magno with Reuters