Index slips below 6,100 on rising oil prices

MANILA, Philippines — The local stock market slipped as rising global oil prices and its impact to inflation dampened investor sentiment.

The benchmark Philippine Stock Exchange index (PSEi) dipped by 0.28 percent or 17.30 points to cap off yesterday’s session slightly below the 6,100 level at 6,099.23.

The broader All Shares index likewise declined by 0.08 percent or 2.54 points to 3,383.31.

Franco Fernandez, equity research analyst at DragonFi Securities Inc., said the PSEi ended lower as sentiment remains weighed down by higher oil prices, with Brent crude futures crossing $100 per barrel amid escalating Middle East hostilities that show no clear signs of resolving soon.

“That’s making investors, especially foreign investors, hesitant to commit more capital because further disruption to energy only adds to inflation concerns in an already high interest rate environment,” he said.

Fernandez said there was also a lack of fresh market catalysts substantial enough to push the market higher.

“Expecting sideways chop for the index in the near term until there is better drivers,” he said.

Sectors were mixed, with those in the red with the slight upper hand. Holdings firms registered the biggest loss at 1.17 percent, while mining and oil posted the largest gain at 2.59 percent.

Total turnover value strengthened to P7.28 billion from P5.9 billion the previous session.

Decliners edged out advancers, 93 to 83, while 67 issues were unchanged.

It was still ICTSI that emerged as the most actively traded stock, climbing by 1.23 percent to P987 per share, followed by GT Capital and BDO Unibank, which fell by 2.96 percent and 0.67 percent, respectively, to P464.80 and P118.10.

Despite ICTSI, the heaviest weighted index member, being up, Fernandez said sustained selling pressure from SM, Ayala Corp., JG Summit and GT Capital dragged the index.