Easing Middle East tensions push market higher in Philippines

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The stock market advanced for a second consecutive session yesterday as it received much-needed boost from gains in the US market as well as easing tensions in the Middle East.

The Philippine Stock Exchange index closed at 6,506.80, rising by 0.97 percent or 62.72 points.

The broader All Shares index likewise climbed by 0.62 percent or 21.19 points to finish at 3,446.90.

Philstocks Financial research and engagement officer Mikhail Plopenio said the local market rose as investors took positive cues from Wall Street overnight.

'Investors cheered Iran's statement that it will not further escalate its conflict with Israel as it lifted worries over higher oil prices,' Plopenio said.

'At home, the statement from National Economic and Development Authority Undersecretary Rosemarie Edillon saying that an uptick in inflation for April is unlikely as the country is already in the harvest season also boosted sentiment,' he said.

However, Plopenio said many still chose to stay on the sidelines as net value turnover stood at P4.2 billion, lower than the year-to-date average of P5.06 billion.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said any further healthy upward correction is possible, especially if the markets already priced in most or all the bad news related to the recent geopolitical risks due to the increased tension in the Middle East, particularly the Iran-Israel conflict.

All sectors were in the positive territory, led by industrial, which surged by 1.51 percent.

Property and services sectors also rose by more than one percent each.

Market breadth was positive as advancers crushed decliners, 102 to 73, while 51 issues did not change.

Century Pacific Foods recorded the largest gain among index members at 5.63 percent, while BDO lost the most with 2.18 percent.