PSEi slips as oil price fears resurface

Philippine stocks retreated on Thursday as investors turned cautious again over geopolitical tensions in the Middle East and their potential impact on oil prices.

The benchmark Philippine Stock Exchange Index fell 0.73 percent or 44.75 points to 6,113.58, pulling back as concerns resurfaced over the conflict involving Iran and the United States and Israel.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the PSEi ended lower as the market entered selling mode after oil prices surged again to $100 per barrel.

“The spike in oil heightened inflation concerns and dampened investors’ risk appetite, raising the possibility of a rate hike by the Bangko Sentral Ng Pilipinas. As a result, broad-based selling emerged across sectors as market sentiment turned cautious,” Limlingan said.

According to Philstocks financial research manager Japhet Tantiangco, market sentiment weakened after Iran warned that oil prices could surge to as high as $200 per barrel amid the ongoing war with the US.

Rising oil prices could fuel inflation and raise costs for businesses and consumers, prompting investors to adopt a more cautious stance.

The local market was also weighed down by the continued weakness of the Philippine peso, which added pressure on the bourse.

See Also

Pag-IBIG-Megawide precast facility up and running in Rizal

Despite the decline, trading activity remained relatively active. Net value turnover reached P7.14 billion, exceeding the year-to-date average of P6.63 billion.

Foreign investors remained net sellers, with net outflows totaling P453.03 million, further dragging on the market.

Sectoral performance was mostly negative. Only the conglomerates sector managed to end the session in positive territory, rising 1.33 percent.