The local bourse failed again to hit the 8,000 level on Tuesday as investors remained on the sidelines in the wake of political tensions arising from the recent drone attack in Saudi Arabia.
Bellwether Philippine Stock Exchange index (PSEi) slipped 0.81 percent or 64.67 points to finish at 7,932.23, while the wider All Shares dropped 0.60 percent or 28.85 points to close at 4,794.20.
“Geopolitical risks related to the recent attack on Saudi Aramco, which also led to US markets closing in the red last night, prevented the PSEi from inching past the 8,000 mark today,” Papa Securities sales associate Gabriel Jose Perez said on Tuesday.
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.
Saudi Aramco, the country’s national oil company, currently has 35-to-40-day buffer supply to meet contractual obligations.
The United States accused Iran of executing the said attack, but the latter denied the allegation.
With supply at risk, Brent crude oil price rose to 14.6 percent to $69.02 per barrel while US West Texas Intermediate surged 14.8 percent to $62.90 per barrel on Tuesday.
Regina Capital Development Corp. head of sales Luis Limlingan said: “Philippine shares fell this time after a flat start yesterday as investors feared that the Saudi attack could slow global economic growth.”
AAA Equities head of research Christopher Mangun, meanwhile, said there were some concerns about inflation possibly shooting up amid higher oil prices.
“Investors are still on the sidelines and no one is convinced that this market can go higher,” he added.
US markets were down, with the Dow Jones taking the biggest hit at 0.52 percent. This was followed by S&P 500 and Nasdaq which dipped by 0.31 percent and 0.28 percent, respectively.
In Asia, Tokyo was up 0.06 percent, Seoul rose by 0.01 percent, Jakarta climbed by 0.16 percent and Thailand added 0.35 percent.
Meanwhile, Shanghai dipped by 1.74 percent, Hong Kong slid by 1.23 percent and Singapore decreased by 0.59 percent.
In Manila, all sectors were down except for industrial which rose by 0.09 percent.
Volume turnover stood at 720.07 million shares amounting to P5.21 billion.
Losers led winners, 126-73, while 45 issues were unchanged.