PSEi dips as oil breaches $100 per barrel

Philippine stocks snapped a two-day climb on Thursday as investors pocketed gains while renewed concerns over rising global oil prices dampened market sentiment.

The benchmark Philippine Stock Exchange Index (PSEi) shed 0.28 percent, or 17.3 points, to close at 6,099.23.

Brokerage Philstocks Financial Inc. said investors booked gains following the market’s two-day rise.

Sentiment was also weighed down by concerns over the inflationary impact of higher global oil prices after benchmark Brent crude climbed past $100 per barrel amid re-escalating tensions in the Middle East.

The Philippines, a net importer of oil, is particularly vulnerable to a sustained increase in global crude prices as these could eventually translate to higher domestic fuel and transportation costs.

Despite the decline, trading activity was strong, with net value turnover reaching P6.85 billion.

Foreign investors remained on the buying side, recording net inflows of P166.6 million.

Sectoral performance was mixed. Mining and oil led the pack with a 2.59-percent gain, benefiting from the surge in commodity prices.

Holding firms, meanwhile, lagged the market after dropping 1.17 percent.

Among index members, DMCI Holdings Inc. was the session’s top performer, advancing 3.14 percent to P8.22.

DigiPlus Interactive Corp. was the biggest laggard, sliding 3.1 percent to P9.06.

Analysts said the market’s pullback came as investors continued to monitor developments in the Middle East and their potential impact on global commodity prices.

Oil prices have become a key risk for local equities.

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