The Philippine Stock Exchange index (PSEi) fell 0.28% to close at 6,099.23 on Thursday, reversing gains from the previous two days. This dip is attributed to rising global oil prices and geopolitical unrest.
The decline in the PSEi comes as Brent crude oil prices surpassed $100 per barrel, driven by escalating tensions in the Middle East. Investors are increasingly worried about the potential impact on inflation.
Market Reaction to Global Events
The local market tracked regional counters lower as escalating tensions in the Middle East and elevated bond yields kept investors selective.
Denise Joaquin, COL Financial Group Research Analyst
- PSEi closed at 6,099.23, down by 17.30 points.
- All shares index fell to 3,383.31, a decrease of 2.54 points.
- Brent crude oil prices hit $100 per barrel.
After a two-day rise, investors opted to take profits, while fears of increased inflation due to higher oil costs dampened market sentiment. The situation escalated when Iran attacked ships near the Strait of Hormuz, heightening tensions.
In the stock market, most sectoral indices were negative, with holding firms down by 1.17% and industrials sliding by 0.6%. However, mining and oil stocks saw a rise of 2.59%.
Decliners outnumbered advancers, with 93 stocks falling compared to 83 gaining. DMCI Holdings, Inc. led the index with a 3.14% increase, while DigiPlus Interactive Corp. saw a decline of 3.1%.
Trading volume increased to P7.28 billion with 1.03 billion shares changing hands, reflecting a slight uptick in market activity.
As the geopolitical landscape remains volatile, investors are likely to stay cautious, keeping a close watch on oil prices and their implications for Philippine inflation.