PSEi flat on Saudi drone attack
Credit to Author: TYRONE JASPER C. PIAD| Date: Mon, 16 Sep 2019 16:47:43 +0000
The local bourse ended flat on Monday as market sentiment was dragged by news about a drone attack on oil processing facilities in Saudi Arabia over the weekend.
The benchmark Philippine Stock Exchange index (PSEi) inched up by 0.06 percent or merely 4.58 points to finish at 7,996.90 while the wider All Shares were slightly up 0.002 percent or 0.08 point to end at 4,823.05.
“Local shares closed flat following the news of drone attack on Saudi oil assets over the weekend,” Regina Capital Development Corp. head of sales Luis Limlingan said.
The oil facilities in Abqaiq and Khurais were attacked over the weekend with 5.7 million barrels of daily crude production going to waste. This represents more than 5 percent of the total daily production of the world.
This has taken a toll to oil prices. Brent crude oil price increased as much as 19 percent to $71.95 per barrel while US West Texas Intermediate surged by 15 percent to $63.34 per barrel on Monday.
Saudi Aramco, the country’s national oil company, currently has 35-to-40-day buffer supply to meet contractual obligations.
United States accused Iran of executing the said attack but the latter denied the allegation.
“The sudden spike in prices is deemed as a negative for the Philippine economy, as the country imports almost all its petroleum requirements,” Limlingan added.
Meanwhile, Philstocks Financial, Inc. said “last minute bargain-hunting lifted the local market.”
In Asia, Seoul and Thailand rose by 0.64 percent and 0.08 percent, respectively. Meanwhile, Shanghai, Hong Kong, Jakarta and Singapore dropped by 0.02 percent, 0.83 percent, 2.02 percent and 0.18 percent, respectively.
In Manila, all the sectors were mixed. Industrial, mining and oil and property rose while the rest dipped.
Volume turnover stood at 942.23 million shares amounting to P4.97 billion.
Decliners led advancers, 131-68, while 47 issues were unchanged.