Stocks buck Trump’s rejection of Iran deal
Notwithstanding the US not accepting Iran’s proposal to end the war in the Middle East, trading at the Philippine Stock Exchange on Monday was positive, up 0.43 percent to 5,986.85.
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Notwithstanding the US not accepting Iran’s proposal to end the war in the Middle East, trading at the Philippine Stock Exchange on Monday was positive, up 0.43 percent to 5,986.85.
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The PSEi started the week in positive territory, rising 0.43 percent to 5,986.85 on Monday as investors picked up bargains following Friday’s selloff.
The local bourse’s performance came despite US President Donald Trump rejection of Iran’s latest peace deal terms, which he described as “totally unacceptable.” The PSEi managed to buck the spike in global oil prices that followed the latest breakdown in negotiations between the two sides.
Momentum not sustained above 6,000 resistance level
However, analysts noted that the benchmark index failed to sustain momentum above the key 6,000 resistance level, reflecting continued caution in the market.
Net value turnover remained relatively light at P5.05 billion, while foreign investors stayed net sellers with P146.61 million in outflows.
Property stocks led sectoral gains, advancing 1.89 percent, while mining and oil declined 1.81 percent as commodity prices softened. Among index names, Puregold (PGOLD) climbed 4.78 percent to P46.00, making it the day’s top performer, while DigiPlus (PLUS) dropped 5.40 percent to P12.96 amid continued profit-taking.
Sharp peso depreciation
In the currency market, the peso depreciated sharply against the US dollar, closing at P61.15 per US dollar, significantly weaker than last Friday’s P60.613 finish.
The peso’s depreciation came as the US dollar strengthened broadly in global foreign exchange markets after investors scaled back expectations of aggressive Federal Reserve rate cuts following resilient US economic data and elevated Treasury yields.
Investors back to dollar as safe-haven asset
Trump’s rejection of Iran’s latest peace proposal also drove investors back into the greenback as a safe-haven asset amid renewed uncertainty.
Risk aversion likewise resurfaced after fresh tensions reignited concerns over disruptions to global oil supply.
Oil prices rose following Trump’s rejection of the proposal, with Brent crude trading at around $105.33 per barrel and West Texas Intermediate (WTI) at roughly $99.85, both up about 4 to 5 percent on Monday, adding further pressure on the peso.
