PSEi tumbles on failure of Doha oil stabilization talks | Inquirer Business

PSEi tumbles on failure of Doha oil stabilization talks

By: - Business Features Editor / @philbizwatcher
/ 03:53 PM April 18, 2016

THE LOCAL stock barometer tumbled on Monday, tracking the downturn across regional markets as major oil producing countries failed to strike a deal on output freeze.

Slipping for the second session, the Philippine Stock Exchange index shed 77.9 points or 1.06 percent to close at 7,243.40.

ADVERTISEMENT

All counters ended in the red, led by the financial, industrial, services and property counters which all slumped by over 1 percent.

Some 18 oil-exporting nations met in Doha over the weekend with the goal of stabilizing output in order to curb steep oil price declines. But no deal was hatched as Saudi Arabia demanded that Iran – which had just entered the market – be compelled to join any output freeze pact.

FEATURED STORIES

“The expectations of a supply side agreement to support oil prices were dashed,” Citigroup said in a research note on Monday. “Bearishness in energy prices is spilling over and may hurt risk sentiment.”

But Citigroup said it would do not recommend chasing the risk-negative moves. “Continued positive surprise from China’s economic activity data is likely to support risk sentiment,” it said.

“After a strong rally last week, expect the index to face increased selling pressure this week as prices approach key resistance. Technical divergences are something to watch out for as momentum indicators continue their weakness despite last week’s rebound,” said Luis Gerardo Limlingan, managing director at local stock brokerage Regina Capital Development Corp.

At the local market, there were 52 advancers which were overwhelmed by 126 decliners while 49 stocks were unchanged.

The country’s leading oil refiner and distributor Petron was the most battered among the PSEi stocks, sliding by 7.45 percent.

SM Prime fell by 3.72 percent while PLDT and DMCI slid by over 2 percent. ALI, URC, Jollibee and Banco de Oro all fell by over 1 percent.

SMIC, AC, BPI, AP and AEV also declined.

ADVERTISEMENT

The day’s most actively traded stock was non-PSEi Security Bank which fell by over 5.18 percent.

On the other hand, NOW resumed its upswing, gaining 15.85 percent. Globe, Puregold and RRHI also firmed up.

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Philippine stocks, PSEi
For feedback, complaints, or inquiries, contact us.

Curated business news

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.



© Copyright 1997-2022 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.