PSEi climbs above 6,000 line on cease-fire hopes

PHILIPPINE SHARES returned above the 6,000 line on Wednesday on hopes that the war in the Middle East would end soon as the United States said they are already holding peace talks with Iran.

The benchmark Philippine Stock Exchange index (PSEi) rose by 1.81% or 107.97 points to close at 6,044.17, while the broader all shares index went up by 1.84% or 60.93 points to end at 3,356.16.

“The local market rallied on hopes that there will be an agreement between the US and Iran that would end the war. This comes following reports that the US sent a 15-point peace plan to Iran,” Japhet Louis O. Tantiangco, research manager at Philstocks Financial, Inc., said in a Viber message.

“The PSEi ended in the green, closing back at the 6,000 level. Bargain hunting among market participants, following a series of declines, lifted the market,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “Sentiment improved after Donald J. Trump announced that talks between the US and Iran were continuing. He also added that Iran had given the US a major oil-related gift to the US.”

Israel and Iran exchanged airstrikes on Wednesday, as Iran’s military rejected Mr. Trump’s assertion the US was in negotiations to end the war which has roiled energy and financial markets, saying the US is negotiating with itself, Reuters reported.

The rejection of negotiations by the unified command of the Iranian Armed Forces, which is dominated by the hardline elite Revolutionary Guards, comes amid reports the US has sent a 15-point plan for discussion to Tehran.

Mr. Trump told reporters at the White House on Tuesday the US was in “negotiations” with “the right people” in Iran to end the war, adding the Iranians wanted to reach a deal very badly.

Asia is at the frontline of the fuel crisis, buying more than 80% of the crude that transits the Strait of Hormuz, and governments there are scrambling to respond to fuel shortages with policies such as enforced work-from-home and stimulus measures enforced during the COVID pandemic era. Some countries have declared public holidays and closed schools.

All sectoral indices closed in the green on Wednesday. Mining and oil jumped by 4.03% or 608.48 points to 15,695.89; property increased by 2.11% or 41.29 points to 1,998.44; financials went up by 1.92% or 36.42 points to 1,925.45; services climbed by 1.71% or 46.49 points to 2,759.38; holding firms increased by 1.57% or 71.43 points to 4,610.11; and industrials went up by 1.4% or 123.31 points to 8,878.08.

Advancers outnumbered decliners, 118 to 81, while 54 names closed unchanged.

Value turnover rose to P7.37 billion on Wednesday with 1.15 billion shares traded from the P5.7 billion with 633.85 million issues that changed hands on Tuesday.

Net foreign buying was at P224.69 million, a turnaround from the P755.56 million in net selling recorded in the previous session. — Alexandria Grace C. Magno with Reuters