PSEi halts losing streak on Iran peace deal hopes

THE benchmark index bounced back from a four-day losing run on bargain hunting and also lifted by renewed optimism over peace talks between the United States and Iran.

The Philippine Stock Exchange index (PSEi) rose by 0.46% or 27.3 points to close at 5,920.70 on Thursday, while the broader all shares index fell by 0.12% or 4.03 points to end at 3,335.85.

“The local market ended higher after four straight days of decline as selective bargain hunting emerged among investors. However, market participants still looked to remain engaged in short-term positions amid cautious sentiment. Gains were trimmed in the afternoon session as selling pressure resurfaced, limiting the market’s upside,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The local market rose taking cues from Wall Street’s rally overnight. US President Donald J. Trump’s statement saying that the US and Iran are already on the final stages of negotiation sparked hopes that a peace deal would be coming soon,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

Iran said on Thursday it was reviewing Washington’s latest position on ending the war after Mr. Trump suggested he was prepared to wait a few days to “get the right answers” from Tehran but warned of renewed attacks if it did not agree to a deal, Reuters reported.

Six weeks since a fragile ceasefire came into force, talks to end the war have shown little progress, while soaring oil prices have raised concern over inflation and the impact on the global economy.

Iran submitted its latest offer to the US this week. Tehran’s descriptions suggest it largely repeats terms Mr. Trump previously rejected, including demands for control of the Strait of Hormuz, compensation for war damage, lifting of sanctions, release of frozen assets and the withdrawal of US troops.

Back home, most sector counters closed higher on Thursday. Services jumped by 1.22% or 36.68 points to 3,027.05; mining and oil increased by 0.56% or 99.86 points to 17,658.63; holding firms went up by 0.41% or 17.99 points to 4,390.3; property climbed by 0.2% or 3.89 points to 1,915.02; and financials rose by 0.2% or 3.51 points to 1,762.14.

Meanwhile, industrials fell by 0.61% or 52.61 points to 8,524.78.

Decliners beat advancers, 99 to 69, while 65 names were unchanged.

“Bank of the Philippine Islands was the day’s index leader, climbing 2.76% to P89.50. Monde Nissin Corp. was the main index laggard, falling 3.66% to P6.84,” Mr. Tantiangco said.

Value turnover went up to P6.58 billion on Thursday with 1.03 billion shares traded from the P5.67 billion with 1.24 billion issues that changed hands on Wednesday.

Net foreign selling increased to P190.76 million from P115.32 million in the previous session. — Alexandria Grace C. Magno with Reuters