PHILIPPINE STOCKS ended slightly lower on Thursday as the market sat on the sidelines as it awaited developments in the Middle East conflict.
The Philippine Stock Exchange index (PSEi) rose 0.34 point to end at 6,063.69, while the broader index of all shares rose 0.05% or 1.93 point to end at 3,398.81.
“The Philippine market is relatively closed as investors remain cautious. Sentiments are holding firm as the market awaits the development of possible peace talks in the Middle East, maintaining risk appetite. Despite this, special purchases in key stocks helped to keep the market going,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“The local market moved, reflecting investor skepticism and cautious trading amid uncertainty about the Middle East conflict and its impact on the local economy. Hopes that there will be a second round of talks between the US and Iran provided market support in Thursday’s session,” said Philstocks Financial, Inc.’s Research Manager. Japhet Louis O. Tantiangco in a Viber message. “However, the economic effects brought about by the war ranged from inflation to the BSP (Bangko Sentral ng Pilipinas) tightening its policy stance against sentiment.”
BSP governor Eli M. Remolona, Jr BusinessWorld alongside the International Monetary Fund and the World Bank’s 2026 Spring Meetings in Washington, DC where the central bank has room to raise rates to curb inflation amid the Middle East conflict as they expect government spending to support growth.
Mr. Remolona said the results of the second round may appear sooner than expected as the global oil price shock is expected to spill over into domestic food and transport costs.
In March, higher oil prices amid the conflict pushed inflation to a nearly two-year high of 4.1%, faster than the BSP’s forecast of 3.1%-3.9% and the 2%-4% annual target.
In an unchanged meeting last month, the Monetary Board left benchmark interest rates unchanged. It last raised borrowing costs in October 2023.
Sector indexes were divided on Thursday. Industrials rose 0.99% or 87.61 points to 8,919.86; financial instruments increased by 0.67% or 12.86 points to 1,915.02; and participating firms increased by 0.65% or 30.20 points to 4,678.74.
Meanwhile, services decreased by 1.79% or 50.61 points to 2,776.75; mining and oil decreased by 0.36% or 65.22 points to 18,017.78; and the stock fell 0.04% or 0.90 point to 2,017.08.
Decliners outnumber promoters, 100 to 91, while 64 names were closed unchanged.
Value turnover decreased to P7.80 billion on Thursday with 2.14 billion shares traded from P8.16 billion and 1.45 billion issues changed hands on Wednesday.
Total exports decreased to P1.01 billion from P1.37 billion in the previous period. – Alexandria Grace C. Magno
