The stock market extended its gains Thursday after oil prices tumbled Thursday on reports that the United States is considering tapping its reserves to combat a supply crisis sparked by the Ukraine war.
The Philippine Stock Exchange Index rose 36.45 points, or 0.5 percent, to 7,203.47 on a value turnover of P7.8 billion. Gainers beat losers, 110 to 83, with 49 issues unchanged.
Metropolitan Bank & Trust Co. of the Ty Group, the second-biggest lender in terms of assets, climbed 2.4 percent to P57, while Bank of Commerce of the San Miguel Group added 1.8 percent to P12.22 in its market debut.
AC Energy Corp. of the Ayala Group advanced 2.3 percent to P8.73, but sister unit Ayala Land Inc. fell 1.5 percent to P35.05.
The rest of Asian equities, however, struggled to build on the week’s rally after Russia poured cold water on hopes that ceasefire talks were progressing, leaving the prospect of a protracted war in eastern Europe.
The conflict has already sent shockwaves through the world economy, with growth forecasts this year being lowered across the board. On Thursday, the European development bank EBRD said gross domestic product in Russia and Ukraine would contract 10 percent and 20 percent respectively this year.
Asian equity markets fell after three days of healthy gains and following comments from Russian officials playing down progress in talks with Ukraine over the ceasefire.
Adding to selling pressure was data showing signs of a further slowdown in China’s manufacturing sector caused by COVID lockdowns around the country.
Tokyo, Hong Kong, Shanghai, Sydney, Mumbai, Singapore, Taipei and Bangkok retreated, though Seoul, Wellington and Jakarta edged higher.
WTI tumbled more than five percent at one point while Brent dropped more than four percent as reports said President Joe Biden was looking at releasing a million barrels a day for several months—totalling up to 180 million—as he tries to temper a surge in the market to more than $100.
Concerns about demand in China owing to a lockdown in Shanghai were adding to downward pressure.
The White House this month put an embargo on oil from Russia as part of a series of wide-ranging sanctions against the country for its invasion.
However, that sent prices soaring further and put added upward pressure on world inflation, which was already at multi-decade highs.
Officials said the president would make a statement Thursday on plans to cut energy costs “and lower gas prices at the pump for American families.”
Warren Patterson, at ING Groep NV, said: “Suggestions that we could see up to 180 million barrels released over several months is significant and would help to ease some of the tightness in the market.”
It would be the biggest ever release by the United States, he said.
The news comes as the International Energy Agency urges other countries to further tap their reserves.
A coordinated release earlier this year, before the war, did little to temper a rally in prices, which were being boosted by the global economic reopening and expectations for a pick-up in demand. With AFP