PHL shares recover as Iran and Israel halt attacks

PHILIPPINE SHARES rebounded on Tuesday as tensions between Israel and Iran eased, causing global oil prices to fall anew and boosting risk sentiment.

The Philippine Stock Exchange index (PSEi) rose by 1.12% or 66.30 points to close at 5,945.71, while the broader all shares index went up by 0.69% or 22.97 points to end at 3,325.28.

“The Philippine market rebounded as investors stepped back into risk assets following (Monday’s) selling pressure. Crude oil prices eased from overnight highs after Israel and Iran signaled a temporary pause in attacks, helping improve regional risk sentiment and support a relief rally in equities,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “The recovery remains tentative, however, as geopolitical developments and energy prices continue to be key drivers of market direction.”

“The local market rose as Iran stopped its military strikes against Israel, causing global oil prices to pull back,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco likewise said in a Viber message.

Oil prices fell on Tuesday, erasing most of the previous session’s gains, after Iran and Israel said they had halted attacks on each other following an appeal from US President Donald J. Trump, though both sides warned they could resume hostilities, Reuters reported.

Brent crude futures were down $1.33 or 1.4% at $92.92 a barrel at 0741 GMT, while US West Texas Intermediate declined $1.73 or 1.9% to $89.57 a barrel.

Still, in the absence of any other movers in the market, prices fell after Iran and Israel said they had now halted attacks on each other. Renewed Israeli strikes on Iran and attacks in Lebanon over the weekend had pushed oil prices up 5% on Monday.

Israel’s campaign against Hezbollah in Lebanon helped trigger the latest missile exchanges between Iran and Israel — the most direct confrontation since the April ceasefire — complicating Mr. Trump’s push to end a war that the US and Israel launched on Feb. 28.

Back home, most sectoral indices closed higher on Tuesday. Holding firms climbed by 2.09% or 89.74 points to 4,375.11; services increased by 1.33% or 41.27 points to 3,127.88; industrials went up by 1.16% or 96.60 points to 8,391.54; and financials rose by 0.38% or 6.89 points to 1,789.33.

Meanwhile, mining and oil dropped by 1.51% or 255.33 points to 16,647.39, and property fell by 0.62% or 11.45 points to 1,810.39.

Decliners outnumbered advancers, 96 to 82, while 64 names closed unchanged.

“DigiPlus Interactive Corp. was the day’s top index gainer, jumping 6.43% to P10.60. Ayala Land, Inc. was the main index laggard, falling 2.35% to P13.28,” Mr. Tantiangco said.

Value turnover rose to P9.33 billion on Tuesday with 853.82 million shares traded from the P6.45 billion with 551.58 million issues that changed hands on Monday.

Net foreign selling went down to P155.98 million from P754.31 million in the previous session. — Alexandria Grace C. Magno with Reuters