PSEi firms up as oil prices ease

Local stocks rebounded on Monday as easing global oil prices and renewed hopes for United States-Iran negotiations boosted investor sentiment.

The benchmark Philippine Stock Exchange Index (PSEi) added 1.58 percent, or 98.28 points, to close at 6,334.72.

According to Philstocks Financial Inc. research manager Japhet Tantiangco, the local market recovered as oil prices fell following US President Donald Trump’s announcement that planned strikes against Iran had been put on hold and negotiations would resume.

The development also supported the peso, which strengthened past the 61-per-US dollar level, helping improve market sentiment.

Luis Limlingan, head of sales at Regina Capital Development Corp., also said investors welcomed the third straight month of expansion in the country’s manufacturing Purchasing Managers’ Index and expectations of steady July inflation.

“Investor sentiment was further supported by optimism ahead of key macroeconomic data releases. Strong earnings from select index heavyweights also boosted buying interest, lifting the broader market,” Limlingan said.

Despite the rally, trading activity remained lackluster. Net value turnover reached only P5.1 billion as investors continued to adopt a cautious stance amid lingering global uncertainties.

Only the property sector finished in the red, slipping 0.84 percent. Services led the gains, advancing 3.31 percent.