PSEi nears 6,000 mark on Mideast hopes
Philippine stocks rose on Wednesday as investors bet on easing geopolitical conflict in the Middle East.
The benchmark Philippine Stock Exchange Index (PSEi) gained 0.84 percent or 49.74 points to close at 5,998.68.
Philstocks Financial research manager Japhet Tantiangco said sentiment improved amid signals that the conflict involving Iran could deescalate in the coming weeks.
Tantiangco said reports quoting US President Donald Trump, who expects American troops to leave Iran within two to three weeks, helped lift risk appetite.
“The local index moved in step with the broader regional rally after Trump stated that the US would leave Iran within two to three weeks,” said Ron Acoba, chief investment strategist at Trading Edge Consultancy.
“Market sentiment was further supported as WTI [West Texas Intermediate] crude dropped 4 percent, settling above $97 after hitting a new year-to-date high of $105.90 last week.
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said gains remained modest as elevated oil prices continue to pose inflationary risks, keeping investor sentiment cautious amid lingering geopolitical uncertainty.
Trading activity remained strong, with net value turnover reaching P7.45 billion.
Despite the advance, foreign investors stayed on the sidelines, posting net outflows of P1.2 billion.
Sectoral performance was broadly positive, with only the industrial index ending in the red, down 1.38 percent.
Mining and oil led the gains, climbing 6.37 percent, as investors positioned for commodity-related plays.
