PSEi extends slump on oil, inflation fears

Local stocks extended their decline on Tuesday as investors stayed cautious over rising oil prices and inflation risks tied to the ongoing Middle East conflict.

The Philippine Stock Exchange Index (PSEi) dropped 0.68 percent or 40.95 points, to close at 6,013.10.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said investors remained on the sidelines as they awaited further developments in the Middle East.

“Market sentiment was also weighed down by reports that the Philippines lags behind its Asean (Association of Southeast Asian Nations) peers in the FDI (Foreign Direct Investment) Confidence Index. Overall, cautious positioning prevailed as uncertainty continues to limit risk appetite,” Limlingan added.

Philstocks financial research manager Japhet Tantiangco said sentiment remained fragile as the United States’ blockade of the Strait of Hormuz stoked fears of supply disruptions, pushing global oil prices higher and clouding the inflation outlook.

Back home, trading activity was subdued, with net value turnover reaching P5.65 billion, below the year-to-date average of P6.47 billion, reflecting lingering caution.

Foreign funds continued to exit the market, posting net outflows of P446.77 million, adding pressure on the benchmark index.

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Sectoral performance was mixed. Mining and oil stocks led the gainers, rising 1.03 percent, while services declined 1.45 percent.

Market breadth was slightly positive, with advancers edging out decliners, 110 to 93.

Among index members, Monde Nissin Corp. emerged as the top gainer, climbing 6.73 percent to P6.98 per share.