PSEi slips on oil price fears, foreign selling

MANILA, Philippines – Local stocks slipped Monday as renewed US-Iran conflict lifted oil prices, dampening investor sentiment and prompting foreign selling.

The benchmark Philippine Stock Exchange Index (PSEi) fell 0.33 percent, or 20.98 points, to close at 6,265.72.

READ: US strikes Iran as Gulf states targeted in flareup over Hormuz

Article continues after this advertisement

Philstocks Financial Inc. research manager Japhet Tantiangco said the local market opened on a positive note as investors hunted for bargains.

FEATURED STORIES

BUSINESS

BUSINESS

BUSINESS

However, gains faded as concerns over rising global oil prices weighed on sentiment.

The research firm noted that the renewed geopolitical tensions followed fresh military strikes exchanged by the US and Iran as both sides fought for control of the Strait of Hormuz, a key global oil shipping route.

Guarded trading

Luis Limlingan, head of sales at Regina Capital Development Corp., said the local bourse ended lower as investors continued to consolidate positions, with the PSEi trading below the key 6,300 resistance level.

“Market participants remained cautious as they awaited fresh catalysts to determine the market’s next direction. Sustained buying interest and a breakout above resistance may be needed to support further upside momentum,” Limlingan said.

Article continues after this advertisement

Foreign investors turned net sellers, unloading a net P673.06 million worth of local shares. The outflows snapped a six-day streak of net foreign buying.

Among sectoral indices, only the services index finished in positive territory, rising 0.40 percent. All other sectors ended lower, with mining and oil posting the steepest decline at 2.27 percent.

Article continues after this advertisement

“The local market started the day on a positive note backed by bargain hunting. However, the bourse eventually fell as rising global oil prices amid renewed US-Iran tensions weighed on sentiment,” Tangiangco said.

READ: Diesel prices seen rising anew on July 14

Among index members, Converge ICT Solutions Inc. emerged as the top gainer, climbing 2.17 percent to P9.40.

DigiPlus Interactive Corp., meanwhile, was the biggest loser, dropping 3.52 percent to P10.96.

Despite the day’s decline, analysts said investors continue to monitor developments in the Middle East, with any further escalation likely to influence oil prices and risk appetite in financial markets.

Your subscription could not be saved. Please try again.

Your subscription has been successful.

Thin trading also suggested many investors remained on the sidelines while awaiting clearer market catalysts. /pai INQ