PSEi Slips as Oil Breaches $100/Barrel, Inflation Fears Dampen Sentiment

MANILA, Philippines — Local stocks snapped a two-day climb on Thursday as investors pocketed gains while renewed concerns over rising global oil prices dampened market sentiment. The benchmark Philippine Stock Exchange Index (PSEi) shed 0.28 percent, or 17.30 points, to close at 6,099.23. READ: PSEi extends gains on bargain hunting Brokerage Philstocks Financial Inc. said investors booked gains following the market’s two-day rise. Rising global oil prices weighed down sentiment as benchmark Brent crude climbed past $100 per barrel amid re-escalating tensions in the Middle East, raising concerns about inflation. The Philippines, a net oil importer, is particularly vulnerable to a sustained rise in global crude prices, as these could eventually translate into higher domestic fuel and transportation costs. READ: Trump’s Iran strategy: Could this become a forever war? Luis Limlingan, head of sales at Regina Capital Development Corp., said sentiment also weakened as global markets tracked renewed uncertainty after President Trump said the US-Iran war could continue beyond the US midterm elections. “The combination of elevated oil prices and prolonged geopolitical uncertainty kept investors defensive and weighed on risk appetite,” Limlingan said. READ: Trump promises each American $5,000 if Republicans win midterms Despite the decline, trading activity was strong, with net value turnover reaching P6.85 billion. Foreign investors remained on the buying side, recording net inflows of P166.60 million. The performance across sectors varied. Mining and oil led the pack with a 2.59-percent gain, benefiting from the surge in commodity prices. Holding firms, meanwhile, lagged the market after dropping 1.17 percent. Among index members, DMCI Holdings Inc. was the session’s top performer, advancing 3.14 percent to P8.22. DigiPlus Interactive Corp. was the biggest laggard, sliding 3.10 percent to P9.06. Analysts said the market’s pullback came as investors continued to monitor developments in the Middle East and their potential impact on global commodity prices. Oil prices have become a key risk for local equities as investors weigh how a prolonged increase could affect inflation and the broader Philippine economy. /pai