PSEi back at 6,000 level as global oil prices fall - BusinessWorld Online

BW FILE PHOTO THE MAIN INDEX returned to the 6,000 level on Monday as global oil prices declined on optimism over peace deal negotiations between the United States and Iran.The Philippine Stock Exchange index (PSEi) rose by 0.8% or 47.98 points to close at 6,009.38, while the broader all shares index went up by 0.44% or 15.05 points to end at 3,371.88.

“The local market rose as global oil prices declined with the benchmark Brent crude dropping below the $100 per barrel mark.This comes on hopes that the US and Iran would reach a peace deal soon,” Philstocks Financial, Inc.

Research Manager Japhet Louis O.Tantiangco said in a Viber message.

“The Philippine market ended higher following the sharp decline in crude prices amid renewed optimism over the US-Iran peace talks.Moreover, the local currency appreciated against the US dollar, improving sentiment toward equities and boosting investor confidence.

Gains were driven by selective buying as investors welcomed easing inflationary and geopolitical concerns,” Regina Capital Development Corp.Head of Sales Luis A.

Limlingan said in a Viber message.The peso strengthened by 22.5 centavos to close at P61.465 a dollar on Monday from P61.69 on Friday. Oil prices fell more than 4% to two-week lows on Monday as optimism grew that the United States and Iran were moving closer to a peace deal, even though they remain at odds over key issues such as blockades on the Strait of Hormuz, Reuters reported.

Brent crude futures were down $4.44 or 4.3% to $99.10 a barrel at 0822 GMT, while US West Texas Intermediate futures were at $92.24 a barrel, down $4.36 or 4.5%.Both contracts touched their lowest since May 7 earlier in the session.

On Saturday, US President Donald J.Trump said Washington and Iran had “largely negotiated” an understanding on a peace deal that would reopen the Strait of Hormuz, which carried a fifth of global shipments of oil and liquefied natural gas b...