Oil price concerns sink stocks, peso

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MANILA, Philippines — The local stock market closed the week in the negative territory while the peso weakened to the 59 to $1 level amid concerns on rising oil prices due to the ongoing conflict in the Middle East. 

The bellwether Philippine Stock Exchange index capped off the week at 6,320.41, down by 0.94 percent or 60.12 points. The broader All Shares index likewise declined by 0.88 percent or 31 points, ending at 3,494.99.

“Local shares slipped as WTI and Brent crude climbed to $80 per barrel, weakening the peso and stoking concerns of oil-driven inflation, prompting a shift toward safe-haven assets,” AP Securities Inc. said.

Luis Limlingan of Regina Capital said investors remained cautious amid the ongoing conflict in the Middle East, which continues to weigh on global sentiment and heighten uncertainty. 

“The peso’s depreciation to the 59 level against the dollar further dampened investor confidence and pressured equities across key sectors,” he said. 

All sectoral gauges were in the red, except for property which advanced by 0.28 percent.

Mining and oil was the session’s biggest loser, shedding 2.21 percent, followed by financials, which fell by 2.14 percent.

Total value turnover improved slightly to P7.66 billion from the previous day’s P6.25 billion.

Meanwhile, the peso tumbled for the seventh straight trading day to close at 59 against the dollar yesterday, amid rising global oil prices and mounting concerns over inflation that weighed on sentiment toward emerging market currencies. 

Data from the Bankers Association of the Philippines showed that the local currency fell by 37 centavos from its 58.63 finish on Thursday. However, this is still stronger than the peso’s record low of 59.46 per dollar seen on Jan. 15.

Chinabank chief economist Domini Velasquez likewise said the peso weakened sharply this week as oil prices climbed and investors turned cautious.