SHARES rose further on Thursday to return above the 7,000 level as global oil prices plunged overnight.
The benchmark Philippine Stock Exchange index (PSEi) improved by 134.92 points or 1.93% to close at 7,124.80 on Thursday, while the broader all shares went up by 51.47 points or 1.37% to close at 3,783.82.
“Along with Asian shares, the local bourse jumped, as the global oil prices fell sharply overnight. At home, being one of the net importers of oil, the decline of oil prices spurs optimism as it may somehow slow down the increase of oil prices in the short run,” Philstocks Financial Research Associate Claire T. Alviar said in a Viber message.
“Philippine shares posted sharp gains as the recently surging commodity prices, especially oil, cooled while the war in Ukraine continues. Oil prices dropped in a sudden move on Wednesday, giving back some of the rally this month amid supply disruptions stemming from Russia’s invasion of Ukraine,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“A retreat in oil prices helped riskier assets rebound after sharp declines spurred by the war,” Mr. Limlingan said.
Global oil prices fell on Wednesday by the most in nearly two years after Organization of the Petroleum Exporting Countries member the United Arab Emirates said it supported pumping more oil into a market roiled by supply disruptions due to sanctions on Russia after it invaded Ukraine.
Brent crude futures settled down $16.84 or 13.2% at $111.14 a barrel, their biggest one-day decline since April 21, 2020. US crude futures ended down $15.44 or 12.5% at $108.70, their biggest daily decline since November.
However, on Thursday, Brent crude futures were up 3% on Thursday at $114.64 a barrel and US crude rose 1.73% to $110.58 a barrel.
Meanwhile, Russia’s foreign minister Sergei Lavrov arrived in Turkey ahead of planned talks on Thursday with his Ukrainian counterpart Dmytro Kuleba for what will be the first meeting between the two since Russia invaded Ukraine two weeks ago.
Back home, majority of sectoral indices ended in the green on Monday except for mining and oil, which dropped by 226.03 points or 1.64% to 13,483.12.
Meanwhile, holding firms went up by 194.78 points or 2.93% to 6,823.82; services climbed by 34.99 points or 1.83% to 1,947.09; industrials rose 172.81 points or 1.81% to 9,712.46; financials increased by 23.61 points or 1.46% to 1,630.58; and property gained 8.48 points or 0.25% to 3,362.55.
Value turnover decreased to P7.59 billion with 3.35 billion shares changing hands on Thursday from P10.73 billion with 16.80 billion issues seen the previous trading day.
Advancers outnumbered decliners, 108 versus 80, while 47 names closed unchanged.
Foreigners turned buyers with P504.74 million in net purchases on Thursday from P681.4 million in net sales seen on Wednesday. — L.M.J.C. Jocson with Reuters