Declining global oil prices dampen Phl stocks

MANILA, Philippines - The local benchmark index slumped for the fourth consecutive session yesterday as declining oil prices scared off investors.

The Philippine Stock Exchange index (PSEi) lost 0.12 percent or 8.79 points to close at 7,175.08, while the broader All Shares index fell 0.11 percent or 4.67 points at 4,220.89.

Alexander Tiu, analyst at AB Capital Securities Inc., said Wednesday’s outcome was on the back of international leads fueled primarily by fear spurred among investors by the declining oil prices.

“Fundamentally, the Philippines should not be affected by this. However, investors reduced risks. It was investors taking the risk off the table,” Tiu said.

Brent crude declined to $66.29 a barrel while US crude futures fell to $63.18 a barrel.

Locally, Escartin said everything was normal especially as Typhoon Ruby failed to meet expectations.

“People are expecting much worse. So what happened was a good thing for the market,” he said.

Still, decliners continued to dominate advancers, 109 to 64, while 52 stocks were unchanged. Value turnover thinned to P8.69 billion from P10 billion the previous day.

Four counters ended in the red led by mining and oil firms which dropped 0.74 percent or 115.75. Financial firms, meanwhile, gained 0.40 percent or 6.71 points.