STOCKS continued to rise on Wednesday following a decline in global oil prices, which could ease inflation concerns, and lower US yields.

The benchmark Philippine Stock Exchange index (PSEi) rose by 135.02 points or 2.14% to close at 6,445.01 on Wednesday, while the broader all shares index went up by 44.20 points or 1.30% to 3,442.90.

“The decline in international oil prices lifted investors’ sentiment since it is seen to help in bringing down the country’s inflation if sustained,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Also boosting local sentiment, oil prices fell yesterday as speculations grew that an economic slowdown will cut demand for petroleum products,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Philippine shares broke past the 6,400 mark, with falling bond yields giving a boost to growth stocks, and ahead of a slew of economic reports. The market moves also came on the back of the public’s recession worries after the benchmark 10-year US Treasury yield fell below the two-year yield,” Mr. Limlingan added.

Brent crude futures have slid this month on worries that a global slowdown will sap demand. Prices slumped 9.5% to a 2-1/2-month low of $101.10 on Tuesday, before bouncing slightly to $103.86 a barrel in the Asia session on Wednesday, Reuters reported.

Meanwhile, the two-year US Treasury yield has dropped below the 10-year yield, a reliable market signal of a recession capping growth in the medium term.

Yields on two-year Treasuries rose as high as 2.95%, while the 10-year stood at 2.94%. The two-year and five-year parts of the curve also inverted for the first time since February 2020.

The inversions suggest that while investors expect higher short-term rates, they may be growing nervous about the US Federal Reserve’s ability to control inflation without hurting growth.

Back home, majority of the sectoral indices ended in the green except mining and oil, which slid by 160.64 points or 1.42% to 11,143.41.

On the other hand, holding firms climbed by 219.40 points or 3.74% to 6,072.39; industrials gained 201.47 points or 2.18% to end at 9,433.85; services went up by 28.28 points or 1.69% to 1,698.47; property increased by 37.30 points or 1.28% to 2,947.91; and financials added 0.38 point or 0.02% to close at 1,510.96.

Value turnover increased to P5.32 billion on Wednesday with 915.72 million issues switching hands from the P3.98 billion with 509.22 million shares seen on Tuesday.

Advancers outnumbered decliners, 114 versus 71, while 47 names closed unchanged.

Foreigners turned buyers with net purchases worth P93.22 million recorded on Wednesday from the P146.06 million in net selling seen the previous trading day.

Mr. Limlingan said investors will monitor the Fed minutes to be released overnight, as well as US data on mortgages and manufacturing. — J.I.DP. Tabile with Reuters