PSEi, peso rebound as easing oil prices lift market sentiment

MANILA – Declining crude oil prices helped ease negative investor sentiment and allowed both the Philippine Stock Exchange index (PSEi) and the Philippine peso to recover on Tuesday.

The local bourse’s main index rose 1.13 percent to 5,945.71 points, while the broader All Shares index gained 0.70 percent to 3,325.28 points.

Most sectoral gauges tracked the main index, led by Holding Firms, which climbed 2.09 percent. It was followed by Services, up 1.34 percent; Industrial, 1.16 percent; and Financials, 0.39 percent.

READ MORE: Strong peso foreshadows bad economic news, says ING economist

On the other hand, Mining and Oil declined 1.51 percent, while Property slipped 0.63 percent.

Trading volume remained thin at 853.11 million shares valued at PHP9.31 billion. Decliners outnumbered advancers, 96 to 82, while 64 issues were unchanged.

“The Philippine market rebounded as investors stepped back into risk assets following yesterday’s selling pressure. Crude oil prices eased from overnight highs after Israel and Iran signaled a temporary pause in attacks, helping improve regional risk sentiment and support a relief rally in equities,” Luis Limlingan, Regina Capital Development Corporation head of sales, said.

“The recovery remains tentative, however, as geopolitical developments and energy prices continue to be key drivers of market direction,” he added.

READ MORE: PSEi down, peso almost unchanged

The positive sentiment in the local bourse also benefited the Philippine peso, which strengthened to 61.54 against the U.S. dollar from the previous day’s 61.69.

The local currency opened weaker at 61.65, compared with the previous session’s opening level of 61.49, and traded between 61.70 and 61.53 during the day, bringing the average exchange rate to 61.61.

Trading volume in the foreign exchange market rose to USD1.46 billion from USD1.1 billion on Monday.

Your subscription could not be saved. Please try again.

Your subscription has been successful.

Read Next

Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of Cebudailynews. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.