REUTERS

PHILIPPINE STOCKS inched higher for a third consecutive session on Thursday on continued optimism over the ceasefire between Iran and Israel.

The bellwether Philippine Stock Exchange index (PSEi) edged up by 0.07% or 5.01 points to 6,330.65, while the broader all shares index climbed by 0.16% or 6.02 points to 3,760.45.

“The local market’s sideways movement closed in the positive territory as the positive effects of the Israel-Iran ceasefire continued to lift sentiment. This includes the decline in global oil prices and the rebound of the local currency against the dollar,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

The market closed “flattish as all negative news flow about geopolitical risks and events have been priced out,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.

US President Donald J. Trump said on Wednesday he would likely seek a commitment from Iran to end its nuclear ambitions at talks next week and credited US strikes on Iran with bringing a swift end to the war between Israel and Tehran, Reuters reported.

Oil prices were steady on Thursday after erasing earlier gains as investors remained cautious about the Iran-Israel ceasefire while also shifting focus to market fundamentals. Brent crude futures fell 11 cents or 0.2% to $67.57 a barrel by 0821 GMT. US West Texas Intermediate crude fell 8 cents or 0.1% to $64.84 a barrel.

The peso extended its recovery on Thursday as lower oil prices eased inflation concerns, closing at P56.605 per dollar, up by 10.6 centavos from Wednesday’s finish.

“The market was tempered within the day, however, by uncertainties over the Federal Reserve’s policy outlook as Fed Chair Jerome H. Powell, in his testimony at the United States Congress, signaled a wait-and-see policy approach amid the US’ tariff policies,” Mr. Tantiangco added.

The Trump administration’s tariff plans may well just cause a one-time jump in prices, but the risk it could cause more persistent inflation is large enough for the central bank to be careful in considering further rate cuts, Mr. Powell told a US Senate panel on Wednesday.

Majority of sectoral indices closed lower on Thursday. Mining and oil decreased by 1.36% or 135.49 points to 9,758.47; financials went down by 0.16% or 3.73 points to 2,314.56; industrials dropped by 0.15% or 13.61 points to 9,051.23; and services slipped by 0.09% or 1.99 points to 2,183.64.

Meanwhile, property rose by 1.29% or 29.19 points to 2,280.23 and holding firms increased by 0.41% or 22.45 points to 5,421.90.

Value turnover climbed to P6.06 billion on Thursday with 722.06 million shares traded from the P4.67 billion with 616.14 million issues exchanged on Wednesday.

Advancers outnumbered decliners, 94 versus 76, while 82 names were unchanged.

Net foreign selling went up to P598.85 million on Thursday from P331.50 million on Wednesday. — R.M.D. Ochave with Reuters