REUTERS

PHILIPPINE SHARES ended in the red on Monday, halting a three-day climb as sentiment soured again after talks between the United States and Iran ended over the weekend without a deal to end the war.

The benchmark Philippine Stock Exchange index (PSEi) fell by 0.72% or 44.16 points to close at 6,054.05, while the broader all shares index went down by 0.64% or 22.01 points to end at 3,386.52.

The PSEi slipped to the 5,900 level on Monday, logging an intraday low of 5,970.75, but managed to recoup its losses to finish at the session’s high.

“The market pulled back as worries over the war in the Middle East resurfaced. This comes as the US and Iran failed to reach a deal in their meeting last weekend followed by President Trump ordering the US Navy to blockade the Strait of Hormuz,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“Philippine equities closed in the red as renewed geopolitical tensions in the Middle East dampened investor sentiment. Concerns escalated after Donald J. Trump threatened Iran with a blockade of the Strait of Hormuz, reigniting fears of supply disruptions and a spike in global oil prices,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “Crude has already surged above $100 per barrel following the announcement, raising inflation risks and weighing on risk assets globally.”

Brent crude futures rose $6.67 or 7% to $101.87 a barrel by 0630 GMT after settling 0.75% lower on Friday. US West Texas Intermediate was up $7.26 or 7.5% at $103.83 a barrel following a 1.33% loss in the previous session, Reuters reported.

President Donald J. Trump said on Sunday the US Navy would start blockading the Strait of Hormuz, raising the stakes after marathon talks with Iran failed to reach a deal to end the war and jeopardizing a fragile two-week ceasefire.

Back home, most sectoral indices closed lower on Monday. Financials slid by 2.34% or 45.16 points to 1,880.09; property sank by 1.53% or 31.34 points to 2,007.98; mining and oil dropped by 0.96% or 173.88 points to 17,840.29; industrials retreated by 0.85% or 75.32 points to 8,711.94; and holding firms went down by 0.35% or 16.77 points to 4,711.03.

Meanwhile, services jumped by 1.01% or 28.54 points to 2,834.67.

Decliners outnumbered advancers, 121 to 82, while 69 names closed unchanged.

“Only four index members closed the day with gains led by Aboitiz Equity Ventures, Inc., climbing 4.03% to P31. JG Summit Holdings, Inc. was the worst index performer, dropping 5.23% to P27.20,” Mr. Tantiangco said.

Value turnover increased to P7.8 billion on Monday with 789.08 million shares traded from the P6.91 billion with 638.57 million issues that changed hands on Friday.

Net foreign selling was at P216.89 million versus the P1.5 million in net buying recorded on Friday. — Alexandria Grace C. Magno with Reuters

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