Stocks bleed on renewed ME tensions, surging oil price

MANILA, Philippines — The local stock market faltered on its return following a one-day break as oil prices surge following renewed tensions in the Middle East.

The benchmark Philippine Stock Exchange index plummeted by 1.73 percent or 103.3 points to close yesterday’s session at 5,859.94.

The broader All Shares index also tumbled by 1.37 percent or 45.99 points, settling at 3,307.95.

“The Philippine market closed lower as fresh exchanges of strikes between the US and Iran renewed concerns over the fragile ceasefire in the Middle East, dampening investor sentiment,” Luis Limlingan of Regina Capital said.

Limlingan said rising oil prices also weighed on the market, prompting broad-based selling pressure across sectors.

“Investors remained cautious amid fears that prolonged geopolitical tensions could further fuel inflationary risks and market volatility,” he said.

It was a bloodbath across all sectors, with holding firms as well as mining and oil incurring the biggest losses at 2.62 percent and 2.44 percent, respectively.

Trading was tepid as total turnover value stood at P5.65 billion.

Market breadth was negative as decliners squashed advancers, 128 to 61, while 51 issues were unchanged.

ICTSI was the session’s top traded stock, declining by 1.13 percent to P790 per share, followed by BDO Unibank and Jollibee, which shed 2.97 percent and 0.95 percent, respectively, to  P114.50 and P135.20.

Meanwhile, gold prices fell to a two-month low yesterday as fresh ‌US attacks on Iran boosted the dollar and pushed oil prices higher, stoking concerns about rising inflation and clouding the interest rate outlook.

Spot gold was down 1.5 percent at $4,388.76 per ounce, as of 0740 GMT, ?earlier falling to its lowest level since March 26. US gold futures for ?June delivery fell by 1.4 percent to $4,386.