PSEi rebounds on easing oil prices

MANILA, Philippines — Local stocks rebounded Monday as easing global oil prices and renewed hopes for US-Iran talks lifted sentiment, though trading stayed subdued with many investors on the sidelines.

The benchmark Philippine Stock Exchange Index (PSEi) climbed 1.58 percent, or 98.28 points, to close at 6,334.72.

READ: Trump says US, Israel to hold off on Iran strikes

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According to Philstocks Financial Inc. research manager Japhet Tantiangco, the local market recovered after oil prices fell following US President Donald Trump’s announcement that planned strikes against Iran had been put on hold and negotiations with the country would resume.

The development also supported the peso, which strengthened past the 61-per-US dollar level, helping improve market sentiment.

Luis Limlingan, head of sales at Regina Capital Development Corp., also said the local bourse ended higher as investors welcomed the third straight month of expansion in the country’s manufacturing Purchasing Managers’ Index and expectations of steady July inflation.

“Investor sentiment was further supported by optimism ahead of key macroeconomic data releases. Strong earnings from select index heavyweights also boosted buying interest, lifting the broader market,” Limlingan said.

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Despite the rally, trading activity remained lackluster. Net value turnover reached only P5.10 billion as investors continued to adopt a cautious stance amid lingering global uncertainties.

Most sectoral indices ended in positive territory, with only the property sector finishing in the red after slipping 0.84 percent. Services led the gains, advancing 3.31 percent.

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Among index heavyweights, International Container Terminal Services Inc. emerged as the session’s biggest gainer, climbing 4.36 percent to P1,005 per share.

Ayala Land Inc., meanwhile, was the day’s biggest laggard, falling 5.33 percent to P16 apiece. /pai INQ