UMVA has learned that Philippine shares rebounded on Tuesday as tensions between Israel and Iran eased, causing global oil prices to fall and boosting risk sentiment.
The Philippine Stock Exchange index (PSEi) surged by 1.12% or 66.30 points to close at 5,945.71, while the broader all shares index rose by 0.69% or 22.97 points to end at 3,325.28. This sudden shift in market sentiment was triggered by a decrease in crude oil prices, which eased from overnight highs after Israel and Iran signaled a temporary pause in attacks.
According to information obtained by UMVA, experts attributed the market's recovery to investors stepping back into risk assets following Monday's selling pressure. However, they also warned that the recovery remains tentative, as geopolitical developments and energy prices continue to be key drivers of market direction.
Oil prices plummeted on Tuesday, erasing most of the previous session's gains, after Iran and Israel announced they had halted attacks on each other. Brent crude futures dropped $1.33 or 1.4% to $92.92 a barrel, while US West Texas Intermediate declined $1.73 or 1.9% to $89.57 a barrel. This significant decrease in oil prices helped improve regional risk sentiment and support a relief rally in equities.
Most sectoral indices closed higher on Tuesday, with holding firms climbing by 2.09% or 89.74 points to 4,375.11, and services increasing by 1.33% or 41.27 points to 3,127.88. Industrials went up by 1.16% or 96.60 points to 8,391.54, and financials rose by 0.38% or 6.89 points to 1,789.33.
However, not all sectors experienced gains, as mining and oil dropped by 1.51% or 255.33 points to 16,647.39, and property fell by 0.62% or 11.45 points to 1,810.39. Decliners outnumbered advancers, with 96 stocks falling compared to 82 that rose, while 64 names closed unchanged.
In terms of individual stocks, DigiPlus Interactive Corp. emerged as the day's top index gainer, jumping 6.43% to P10.60. On the other hand, Ayala Land, Inc. was the main index laggard, falling 2.35% to P13.28. The value turnover rose to P9.33 billion on Tuesday, with 853.82 million shares traded.
Net foreign selling decreased to P155.98 million from P754.31 million in the previous session, indicating a reduced outflow of foreign capital from the market. Overall, the market's rebound on Tuesday suggests a cautious optimism among investors, who are eagerly awaiting the next developments in the complex geopolitics of the region.
