PH stocks, peso fall as higher crude prices weigh on markets

MANILA – The increase in crude oil prices in the international market to almost USD104 per barrel pushed investors’ worries further up, reversing the rise of the Philippine Stock Exchange index (PSEi) and hurting the Philippine peso on Thursday.

It was a bloodbath in the local bourse, with the main gauge down by 2.2 percent to 5,610.39 points, and the broader All Shares by 1.45 percent to 3,145.55 points.

Services posted the biggest drop at 4.86 percent, followed by Mining and Oil, 3.43 percent; Financials, 1.43 percent; Property, 1.02 percent; Industrial, 0.09 percent; and Holding Firms, 0.06 percent.

Volume reached a little more than 2 billion shares amounting to PHP21.13 billion.

Decliners led advancers 112 to 73, while 67 shares were unchanged.

“The local index ended lower as selling pressure intensified amid rising crude oil prices, with oil nearing USD104 per barrel. Moreover, sentiment weakened as traffic through the Strait of Hormuz fell to a two-month low, raising concerns over potential supply disruptions,” said Luis Limlingan, Regina Capital Development Corp. head of sales.

“Investors remained cautious as elevated oil prices could further weigh on inflation and economic growth.”

The local currency, meanwhile, ended the day at 62.90 to the greenback from its 62.75 finish on Wednesday.

It opened the day flat at 62.65, and traded between 62.90 and 62.65. The average stood at 62.76.

Volume rose to USD1.45 billion from the previous day’s USD1.21 billion.