Stocks go up as oil price slide boosts sentiment

PHILIPPINE SHARES rebounded on Tuesday as lower global oil prices amid easing tensions between the United States and Iran lifted investor sentiment, with last-minute buying providing a boost.

The Philippine Stock Exchange index (PSEi) rose by 0.67% or 38.23 points to close at 5,716.15, while the broader all shares index went up by 0.65% or 20.66 points to end at 3,204.18.

The market opened Tuesday’s trading session at 5,693.11, better than Monday’s finish of 5,677.92. It dropped to a low of 5,634.65, while its closing level was its intraday high.

“The PSEi closed higher as late-session buying lifted the market, likely supported by improving crude prices and bargain hunting following the previous session’s sell-off. The recovery in fuel prices helped ease some concerns over inflationary pressures, while investors took advantage of recent declines to selectively accumulate stocks,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

However, investors stayed risk-averse amid lingering macroeconomic uncertainties, he said.

COL Financial Group, Inc. Research Analyst Denise Joaquin said the last-minute buying lifted the market after a mostly mixed trading session, with easing oil prices supporting sentiment.

“Investors continued to focus on stock-specific catalysts while positioning ahead of upcoming third-quarter earnings releases,” she said, adding that turnover on Tuesday was mostly concentrated in International Container Terminal Services, Inc., which is expected to report its financial results on Wednesday, and Mynt, Inc., which released its own earnings on Tuesday.

GCash parent Mynt’s net profit jumped by 43.3% year on year to P5.63 billion in the third quarter, bringing its nine-month earnings to P16.45 billion, up 17.4%.

Meanwhile, oil prices fell on Tuesday, extending losses from the previous session after US President Donald J. Trump downplayed the need for additional military action against Iran “at this point,” Reuters reported. Brent crude futures declined 1.7% to $90.99 a barrel at 0759 GMT, while US West Texas Intermediate futures fell 1.8% to $85.20 a barrel.

Five of the six sectoral indices closed in the green on Tuesday. Holding firms rose by 3.12% or 133.50 points to 4,411.51; mining and oil increased by 1.77% or 336.69 points to 19,401.41; industrials went up by 0.94% or 68.68 points to 7,368.82; property climbed by 0.19% or 3.39 points to 1,780.40; and financials rose by 0.16% or 2.86 points to 1,845.54. Meanwhile, services went down by 0.99% or 28.38 points to 2,840.72.

Advancers outnumbered decliners, 89 to 83, while 62 names were unchanged.

Value turnover rose to P7.46 billion on Tuesday with 670.11 million shares traded from the P5.98 billion with 822.34 million issues on Monday.

Net foreign selling fell to P183.81 million from P233.95 million in the previous session. — Alexandria Grace C. Magno