Stocks drop as oil prices rise again

The local stock market closed below the 7,000 level despite early gains as investors noted the rise in oil prices.

The main index dropped 50.03 points or 0.73 percent to settle at 6,956.60 as the Mining and Oil counter led the retreat while the Services sector managed to advance. Volume was weaker at 974.77 million shares worth P7.6 billion as decliners beat gainers 103 to 78 with 53 unchanged.

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“Philippine shares slid with oil prices climbing once more and investors continuing to digest the recent Fed’s rate hike decision and developments over Ukraine-Russia peace talks,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “Oil prices were set for a second straight weekly loss, but found a floor above $100 a barrel on Friday after volatile trading this week with no easy replacement for Russian barrels in sight in a market already marked by tight supply. “

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “Late day selling sent the local market lower. Lingering worries over the possibility of a prolonged Russia – Ukraine war, and its negative impact on the global economy, primarily through elevated oil prices, dragged the local bourse.“

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Credit belongs to : www.mb.com.ph

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