PSEi sinks to 5,700 level amid MSCI reshuffle

Local stocks retreated on Friday as investors stayed cautious over developments in the United States-Iran conflict, while a major MSCI index rebalancing fueled a selloff.

The benchmark Philippine Stock Exchange Index (PSEi) fell 1.56 percent or 91.18 points, to close at 5,768.76.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said PSEi’s intraday low of 5,766.82 on May 29 marked its weakest level since the Middle East conflict erupted on Feb. 28.

“It was also the index’s lowest level in more than six months, or since Nov. 18, 2025, and breached the previous intraday low of 5,816.82 recorded on March 23, 2026,” Ricafort said.

According to Philstocks Financial Inc., investor sentiment remained weighed down by uncertainty in the Middle East.

While signs of a possible agreement between the US and Iran have emerged, recent military exchanges between the two sides have tempered hopes for a near-term peace deal, the brokerage said.

Trading turnover surged to P25.78 billion, significantly higher than normal levels, largely due to the latest MSCI rebalancing.

Foreign investors, however, remained on the sidelines, ending the session as net sellers with outflows amounting to P6.65 billion.

Sectoral performance was mixed.

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The banking index led the gainers, rising 0.98 percent, while services suffered the steepest decline, dropping 3.52 percent.

Among index constituents, ACEN Corp. emerged as the top performer after climbing 7.84 percent to P3.30.

Meanwhile, Jollibee Foods Corp. was the main laggard, falling 6.14 percent to P126.90.

The broader market reflected the cautious mood.