Index tumbles on oil price concerns

MANILA, Philippines – Share prices closed lower yesterday on renewed oil price concerns and as investors keep a close tab on signs from the US Federal Reserve on whether it would soon raise rates.

The benchmark Philippine Stock Exchange index (PSEi) tumbled 46.03 points, or 0.57 percent, to end at 7,935.18, while the broader All Shares index declined 24.07 points or 0.51 percent to finish at 4,698.94.

Among the different counters, only the financials index finished in positive territory, edging up 0.15 percent or 2.68 points to settle at 1,839.77.

Total value turnover reached P6.85 billion as decliners beat advancers, 117 to 72 while 44 stocks were left unchanged.

Share prices declined as oil remained under pressure after shedding three percent on Monday in the global market.

Data showed Brent crude lost 40 cents to $48.76 a barrel after it hit a two-month high of $51.22 on Friday while US crude futures fell 49 cents to $46.92, after the September contract expired on Monday at $47.05.

Oil prices retreated anew from two-month highs amid rising Chinese fuel exports as well as bigger Iraqi and Nigerian shipments.

Investors are cautiously waiting for US Federal Reserve chairman Janet Yellen’s speech this coming Friday. Analysts said market watchers would wait for her speech to decipher the bias of the regulator as to when it might tweak US interest rates.