Index nearly flat as investors weigh impact of Saudi attacks

MANILA, Philippines — The benchmark Philippine Stock Exchange index finished flat yesterday after trading in the red most of the day.

Investors stayed away from the market following reports of a drone attack on Saudi oil assets.

The PSEi finished flat at 7,996.90, just like the broader All Shares index which was virtually unchanged at 4,823.05.

The specific sectors were mixed with industrial, property and mining and oil all ending in the green, while financials, holding firms and services were in negative territory.

Total value turnover remained thin as investors were risk averse, opting to just stay out of the market.

Market breadth was negative, 131 to 68 while 47 issues were left unchanged.

Luis Limlingan of Regina Capital gave this comment: “Local shares closed flat following the news of drone attack on Saudi oil assets over the weekend. The Abqaiq processing center and the Khurais oil field were targeted on Saturday by drone attacks that have been claimed by Houthi rebels. Aramco disclosed that more than half of current production was halted while news reports indicate that a re-start of most oil output could occur in several days or weeks.”

The effect of the attacks is a possible increase in oil prices in the country, which could then put pressure on inflation.