PSEi slides to 5,800 level on Middle East woes
The local stock barometer slid to the 5,800 level on Monday as investors turned cautious amid the escalating conflict in the Middle East, which has kept oil prices elevated.
The benchmark Philippine Stock Exchange Index (PSEi) dropped 1.73 percent or 103.34 points, to close at 5,869.49 at the start of the shortened trading week.
The decline marked a return to the 5,800 territory, its lowest level this year.
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the Philippine market opened the week lower as the Middle East war entered its fifth week.
“The prolonged conflict has continued to weigh on market risk appetite, as both geopolitical and economic factors persistently dampen investor sentiment. External uncertainties and macroeconomic pressures continue to drive cautious trading behavior across markets,” Limlingan said.
Philstocks financial research manager Japhet Tantiangco also said sentiment weakened as hopes for negotiations among involved countries continued to falter, raising the risk of prolonged geopolitical uncertainty.
Tantiangco said higher global oil prices, alongside a weakening peso, added to concerns over inflation, which could complicate the outlook for interest rates and corporate earnings.
Trading remained active despite the decline, with net value turnover reaching P7.31 billion, above the year-to-date average of P6.47 billion.
Foreign investors stayed bearish, ending the session as net sellers, with outflows amounting to P1.55 billion.
Sectoral indices were mostly in the red, with only services posting a marginal gain of 0.03 percent. Banks led the losses, falling 3.25 percent.
