PSEi ends flat amid hopes for Mideast peace talks
PHILIPPINE STOCKS ended flat on Thursday as the market stayed on the sidelines while awaiting developments in the Middle East conflict.
The Philippine Stock Exchange index (PSEi) edged up by 0.34 point to end at 6,063.69, while the broader all shares index went up by 0.05% or 1.93 points to end at 3,398.81.
鈥淭he Philippine market ended relatively flat as investors remained cautious. Sentiment held steady as the market waits for developments in possible peace talks in the Middle East, keeping risk appetite in check. Despite this, selective buying in key stocks helped keep the market afloat,鈥 Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
鈥淭he local market moved sideways, reflective of investors鈥 indecisiveness and cautious trading amid the uncertainties over the Middle East conflict and its impact on the local economy. Hopes of a second round of talks between the US and Iran gave the market support in Thursday鈥檚 session,鈥 Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message. 鈥淗owever, economic effects brought by the war from rising inflation to the possibility of the BSP (Bangko Sentral ng Pilipinas) tightening their policy stance weighed on sentiment.鈥
BSP Governor Eli M. Remolona, Jr. told 大象传媒 on the sidelines of the International Monetary Fund and World Bank鈥檚 2026 Spring Meetings in Washington, DC that the central bank has room to raise rates to quell rising inflation amid the Middle East conflict as they expect government spending to support growth.
Mr. Remolona said that second-round effects may emerge sooner than expected as the global oil price shock is expected to spill over into domestic food and transport prices.
In March, elevated oil prices amid the conflict drove inflation to a near two-year high of 4.1%, faster than the BSP鈥檚 3.1%-3.9% forecast and 2%-4% target for the year.
In an off-cycle meeting last month, the Monetary Board left benchmark interest rates unchanged. It last raised borrowing costs in October 2023.
Sectoral indices were split on Thursday. Industrials rose by 0.99% or 87.61 points to 8,919.86; financials increased by 0.67% or 12.86 points to 1,915.02; and holding firms went up by 0.65% or 30.20 points to 4,678.74.
Meanwhile, services declined by 1.79% or 50.61 points to 2,776.75; mining and oil retreated by 0.36% or 65.22 points to 18,017.78; and property went down by 0.04% or 0.90 point to 2,017.08.
Decliners outnumbered advancers, 100 to 91, while 64 names closed unchanged.
Value turnover decreased to P7.80 billion on Thursday with 2.14 billion shares traded from the P8.16 billion with 1.45 billion issues that changed hands on Wednesday.
Net foreign selling went down to P1.01 billion from P1.37 billion in the previous session. 鈥 Alexandria Grace C. Magno
