Philippine blue chips bounce back on ‘ceasefire’ news

Local stocks rebounded on Tuesday after US President Donald Trump announced a supposed ceasefire between Israel and Iran. Washington had joined the conflict with a coordinated attack with Israel against Iran.

By the end of the session, the benchmark Philippine Stock Exchange Index (PSEi) had jumped by 1.2 percent, or 74.47 points, to close at 6,292.75.

The broader All Shares Index likewise climbed by 0.88 percent, or 32.64 points, to 3,739.2.

A total of 1.13 billion shares worth P5.8 billion changed hands, stock exchange data showed.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the index’s climb was due to Trump’s announcement of a temporary ceasefire between Israel and Iran. Ricarfort said this was “spurring optimism that the worst of the Middle East conflict is over.”

This comes shortly after the United States bombed Iran’s nuclear sites, sending equities across the globe tumbling.

US equities also rose overnight despite Iran’s attack on a major US base in Qatar.

Banks led the gainers at home, with BDO Unibank Inc., Bank of the Philippine Islands (BPI) and Metropolitan Bank and Trust Co. (Metrobank) all surging by at least 2 percent.

DigiPlus Interactive Corp. was the most actively traded stock as it rallied by 3.49 percent to P54.85 each, followed by SM Prime Holdings Inc., down 1.13 percent to P21.85; SM Investments Corp., up 0.47 percent to P859; BDO, up 3.31 percent to P156; and Universal Robina Corp., up 7.56 percent to P88.20 each.

Others were BPI, up 3.26 percent to P136.30; Bloomberry Resorts Corp., up 6.54 percent to P5.54; Ayala Land Inc., up 1.1 percent to P23.05; Manila Electric Co., down 1.1 percent to P540; and Metrobank, up 2.11 percent to P72.50 per share.

Gainers overpowered losers, 122 to 73, while 54 companies closed flat, stock exchange data also showed.