Concerns about rising oil prices weaken shares, peso moves sideways

By Kris Crismundo

October 18, 2023, 8:03 pm

<p><em>(PNA graphics)</em></p>

(PNA graphics)

MANILA – Concerns about rising oil prices in the global market amid the escalating conflict in the Middle East weakened the local stock market on Wednesday while the Philippine peso closed sideways.

“Amid heightened tensions between Israel and Hamas, the local bourse declined by 12.63 points (0.20 percent) to 6,268.27,” Philstock Financials, Inc. assistant research manager Claire Alviar said.

Aside from the Philippine Stock Exchange index (PSEi), all shares likewise fell by 5.98 points to the 3,385.40 level.

“Investors were further concerned about the escalating conflict’s impact on oil prices, potentially leading to an increase in domestic oil prices if global prices continue to climb. This situation is anticipated to be unfavorably received by investors, especially in light of our elevated inflation,” Alviar added.

Regina Capital Development Corp. head of sales Luis Limlingan said Brent crude traded this day higher by USD0.68 to USD90.33 per barrel and the West Texas Intermediate rose USD0.52 to USD87.18 per barrel.

Meanwhile, only two sectors in the index ended in the green, which included Industrial and Financials, improving shares by 89.50 points and 1.94 points, respectively.

Mining and Oil led losers, with a decline of 76.89 points; followed by Property, down by 20.60 points; Holding Firms, down by 31.85 points; and Services, down by 7.46 points.

The local bourse’s net market value turnover stood at PHP4.82 billion.

Ninety-two counters ended the day in the red and 73 in the green, while 61 were left unchanged.

Meanwhile, the peso remained moving sideways finishing at 56.70 to a US dollar from 56.75 close in the previous day.

Closing sideways for three straight days this week, the peso gained 0.08 since Monday.

The local currency kicked off at 56.72, before trading between 56.68 and 56.78 to the greenback.

The volume of trade dropped to USD877.55 million from USD1.11 billion level on Tuesday. (PNA)