PSEi falters as oil prices resume upswing

Local stocks slipped on Tuesday as hopes for a peace deal between the United States and Iran faded, while rising oil prices and a weaker peso added to market concerns.

The benchmark Philippine Stock Exchange Index (PSEi) fell 0.25 percent or 14.87 points, to close at 5,971.98.

Philstocks Financial Inc. said investors turned cautious as the US rejected Iran’s counterproposal, while US President Donald Trump signaled that the ceasefire between the two countries was weakening.

Global crude prices also climbed amid the geopolitical tensions, while the peso slipped back below the 61-to-a-dollar level.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said that the local bourse ended lower as investors took profits following yesterday’s gains.

“Market sentiment was further dampened by lower year-on-year foreign direct investment (FDI) inflows, while the depreciation of the local currency also weighed on investor confidence during today’s session,” Limlingan said.

Trading activity remained subdued, with net value turnover settling at P6.33 billion, slightly below the year-to-date average of P6.35 billion.

Foreign investors continued to exit the market, ending the session with net outflows of P107.55 million.

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Sectoral performance was mixed, with mining and oil stocks leading the gains after rising 2.09 percent. Industrials posted the steepest decline, dropping 1.56 percent.

Among index members, Aboitiz Equity Ventures Inc. emerged as the top gainer, climbing 3.63 percent.

Meanwhile, Jollibee Foods Corp. was the biggest laggard, after plunging 10.67 percent.