PSEi jumps to three-week high on ME peace hopes

THE BENCHMARK INDEX returned to the 6,000 level on Thursday and hit a three-week high as sentiment turned positive on growing hopes for an end to the Middle East (ME) war, but weaker-than-expected Philippine gross domestic product (GDP) growth capped gains.

The Philippine Stock Exchange index (PSEi) rose by 1.12% or 67.06 points to close at 6,034.27, while the broader all shares index went up by 0.98% or 32.96 points to end at 3,396.41.

This was the bellwether’s best finish in three weeks or since it closed at 6,063.69 on April 16.

“The PSEi ended higher as investors tracked gains in global markets amid easing tensions in the Middle East. Strong buying pressure early in the session lifted the benchmark, reflecting improved risk appetite in equities,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “However, gains were tempered after the country’s GDP growth came in below expectations, prompting cautious positioning toward the close.”

“The local market extended its rise as hopes that the US and Iran would come to an agreement soon continued to lift sentiment. This comes amid reports that the two are closing in on a memorandum to end the war. The said hopes for the US and Iran overshadowed the dismal first quarter GDP data released today,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco likewise said in a Viber message.

US President Donald J. Trump predicted a swift end to the war with Iran as Tehran considered a US peace proposal that sources said would formally end the conflict while leaving unresolved key US demands that Iran suspend its nuclear program and reopen the Strait of Hormuz, Reuters reported.

Meanwhile, Philippine economic growth slowed further in the first quarter to hit a new post-pandemic low as a corruption scandal involving flood control projects and price shocks from the Middle East war hit consumer sentiment. GDP expanded by 2.8% in the period, down sharply from 5.4% a year ago and also slower than the 3% pace in the fourth quarter. This was below the 3.4% estimate in a BusinessWorld poll of 21 analysts.

All sector counters closed in the green on Thursday. Financials surged by 2.72% or 48.06 points to 1,809.11; industrials increased by 1.62% or 144.59 points to 9,067.06; mining and oil went up by 0.94% or 170.01 points to 18,183; property climbed by 0.44% or 8.64 points to 1,942.89; holding firms rose by 0.37% or 17.04 points to 4,527.4; and services gained 0.34% or 10.29 points to 2,959.58.

Advancers beat decliners, 125 to 83, while 53 names were unchanged.

“Century Pacific Food, Inc. was the day’s index leader, jumping 7.83% to P31. Converge ICT Solutions, Inc. was the day’s worst index performer, dropping 1.61% to P12.20,” Mr. Tantiangco said.

Value turnover went up to P7.92 billion on Thursday with 892.03 million shares traded from the P7.64 billion with 1.35 billion issues on Wednesday. Net foreign buying rose to P213.38 million from P129.86 million. — Alexandria Grace C. Magno