Fresh Middle East jitters spook equities investors
Local stocks retreated on Thursday as escalating conflict in the Middle East fueled concerns over higher oil prices and their potential impact on inflation and interest rates.
The benchmark Philippine Stock Exchange Index (PSEi) fell 0.53 percent, or 31.30 points, to close at 5,910.06.
The broader market ended mixed, with 75 gainers, 99 decliners and 59 unchanged issues.
Trading activity remained subdued ahead of Friday’s holiday, with total turnover reaching P5.52 billion.
Luis Limlingan, head of sales at Regina Capital Development Corp., said investor sentiment was dampened by continued attacks involving Iran, which raised fears of a broader conflict in the region.
“The local bourse closed in the red as continued attacks in Iran stoked fear and dampened investor sentiment, dragging the index lower,” Limlingan said.
He noted that surging oil prices amid heightened geopolitical tensions sparked concerns over inflation and economic headwinds. This fueled worries that the Bangko Sentral ng Pilipinas could face pressure to raise interest rates.
The local market spent most of the session in negative territory.
Despite the decline, foreign investors remained supportive of the market, ending the session as net buyers with inflows of P554 million. AB Capital said the buying interest was more broad-based rather than concentrated in a single stock.
The financial counter posted the steepest drop, falling 1.39 percent. Properties declined 1.04 percent; holding firms slipped 0.76 percent, while the industrial counter lost 0.35 percent.
Services bucked the trend, rising 0.44 percent, while mining and oil edged up 0.01 percent.
Among index stocks, GT Capital Holdings Inc. led gainers with a 1.49 percent increase, followed by Semirara Mining and Power Corp., China Banking Corp., ACEN Corp. and International Container Terminal Services Inc.
Meanwhile, Universal Robina Corp. emerged as the biggest loser after shedding 5.25 percent. It was followed by BDO Unibank Inc., Ayala Land Inc., JG Summit Holdings Inc. and Aboitiz Equity Ventures Inc.
Market participants are expected to continue monitoring developments in the Middle East, particularly their impact on oil prices and inflation expectations, which remain key drivers of investor sentiment.
******
Get real-time news updates: inqnews.net/inqviber
