Stocks up amid rising Middle East tensions

MANILA, Philippines — The local stock market held its ground yesterday amid concerns over rising tensions in the Middle East, finishing higher for a second straight session.

The Philippine Stock Exchange index (PSEi) returned to the 7,400-level after it was pulled down in the past couple of days due to profit taking.

The PSEi rose by 0.30 percent or 22.49 points to close at 7,402.81, while the broader All Shares index added 0.19 percent or 7.50 points to settle at 3,970.86.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the local stock market continued to gain despite the latest geopolitical risk on Iran’s second missile attack on Israel this year.

“Philippine shares still managed to eke out gain despite rising Middle East tensions weighing on investor sentiment,” Luis Limlingan of Regina Capital said.

“US equities finished in a losing session amidst the rising tension in the Middle East. Similarly, gold prices jumped on safe-haven demand as fears of a full-out war in the Middle East escalated after Iran fired ballistic missiles at Israel,” he said.

Limlingan said yesterday’s market climb was supported by potential US Federal Reserve rate cuts and optimism over further slowing inflation in September.

Net value turnover was thin at P4.06 billion.

Mining and oil led the sectors with a 2.17-percent surge, followed by services, which expanded by 1.35 percent.

The industrial and property counters, meanwhile, were in the red, declining by 0.70 percent and 0.12 percent, respectively.

Market breadth was negative as decliners edged out advancers, 114 to 91, while 56 issues were unchanged.