Index slips below 6,100 on rising oil prices
The local stock market slipped as rising global oil prices and its impact to inflation dampened investor sentiment.
The Philippine Stock Exchange index (PSEi) fell below 6,100 points on Friday, as surging global oil prices and their effects on inflation dampened investor confidence. The PSEi closed at 6,099.23, down 0.28 percent or 17.30 points from the previous day's session. The broader All Shares index also declined 0.08 percent or 2.54 points to 3,383.31.
Analyst Franco Fernandez from DragonFi Securities Inc. attributed the market's dip to the impact of higher oil prices, specifically Brent crude futures breaching $100 per barrel due to Middle East tensions. This has made foreign investors cautious about committing more capital, especially with inflation concerns and a high interest rate environment.
The lack of new market catalysts led Fernandez to anticipate a sideways movement for the index in the near term. Sectors performed mixed, with holdings firms experiencing the largest decline at 1.17 percent, while mining and oil sectors saw the most significant gain at 2.59 percent. Total trading value increased to P7.28 billion from P5.9 billion the previous session.
More shares declined than advanced, with 93 out of 176 stocks dropping and 67 remaining unchanged. ICTSI, the most actively traded stock, rose 1.23 percent to P987 per share, while GT Capital and BDO Unibank fell 2.96 percent and 0.67 percent, respectively, to P464.80 and P118.10. Despite ICTSI's rise, Fernandez noted that sustained selling pressure from SM, Ayala Corp., JG Summit, and GT Capital contributed to the index's downward trend.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
