Stocks rise as Russia-Ukraine talks show progress

SHARES rebounded on Wednesday following signs of progress in peace negotiations between Russia and Ukraine.

The benchmark Philippine Stock Exchange index (PSEi) went up by 51.93 points or 0.73% to close at 7,167.02 on Wednesday, while the broader all shares gained by 24.22 points or 0.64% to 3,794.75.

“Philippine shares continued latching onto the green region ahead of the quarter end as investors monitored ceasefire negotiations in Europe. Russian Deputy Defense Minister Alexander Fomin said that the country would “drastically” reduce military activity near Kyiv,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The market gained, following the positive cues from the US markets overnight and the drop in global oil prices lifted the sentiment. Investors digest the developments in the Russia-Ukraine war after their face-to-face talks. In addition… the lockdown in China pulled global oil prices down. This, somehow, lifts the market sentiment at home,” Philstocks Financial Research Associate Claire T. Alviar said in a Viber message.

“The market finished higher, consistent with some markets across Asia, as investors expressed optimism over the recently held peace talks between Russia and Ukraine,” Timson Securities, Inc. Trader Darren Blaine T. Pangan added in a Viber message.

Russia said on Tuesday it plans to scale down military operations around the Ukrainian capital, Kyiv, while Ukraine might adopt a neutral status that may help de-escalate the five-week war, Reuters reported.

Talks took place in an Istanbul palace more than a month into the largest attack on a European nation since World War II that has killed or injured thousands, forced nearly 4 million to flee abroad, and pummeled Russia’s economy with sanctions.

Meanwhile, oil prices rose more than 2% on Wednesday. Brent crude futures were up $2.6 or 2.4% at $112.81, while US West Texas Intermediate crude futures rose $2.7 or 2.5% to $106.84 a barrel.

Back home, all sectoral indices closed in the green on Wednesday. Services climbed by 26.68 points or 1.39% to 1,940.40; mining and oil rose by 133.47 points or 1.08% to 12,393.52; holding firms improved by 66.75 points or 0.98% to 6,834.87; property went up by 15.34 points or 0.46% to 3,336.94; industrials advanced by 41.21 points or 0.42% to 9,733.65; and financials added 3.92 points or 0.23% to 1,681.70.

The MidCap index advanced by 10.49 points or 0.89% to close at 1,193.19, while the Dividend Yield index improved by 5.29 points or 0.31% to close at 1,693.75.

Value turnover increased to P6.87 billion with 719.59 million shares changing hands from the P4.87 billion or 788.02 million issues seen the previous day.

Advancers outnumbered decliners, 106 versus 81, while 44 names closed unchanged.

Net foreign selling fell to P48.90 million from P214.40 million seen on the previous trading day. — Luisa Maria Jacinta C. Jocson with Reuters