Fresh MidEast worries drag down local stocks
Local stocks fell on Monday as renewed concerns over the conflict in the Middle East dampened investor sentiment, dragging the benchmark index further below the 6,000 mark.
The Philippine Stock Exchange Index (PSEi) declined by 0.59 percent or 35.25 points, to close at 5,941.52.
Philstocks said worries over the Middle East conflict resurfaced after United States President Donald Trump had issued fresh threats against Iran, warning the country to “get moving or face consequences.”
Trading activity remained weak amid the cautious mood in the market.
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., also said the PSEi ended lower as buying interest stayed muted, with investors waiting for clearer market catalysts.
“Market sentiment remained fragile amid continued increases in global crude prices. The local currency also stayed weak against the US dollar, adding to cautious positioning,” Limlingan said.
Net value turnover stood at P3.85 billion, significantly lower than the year-to-date average of P6.31 billion, reflecting subdued investor participation.
Foreign investors also remained bearish on Philippine equities, ending the session as net sellers with outflows amounting to P225.76 million.
Sectoral performance was mostly negative, with only the property sector finishing in positive territory after inching up by 0.19 percent.
Mining and oil counters posted the steepest decline, dropping by 3.43 percent as investors moved away from riskier assets amid geopolitical uncertainty.
Among index members, AREIT Inc. emerged as the top gainer, climbing 3 percent to P39.50.
Meanwhile, Ayala Corp. was the session’s worst performer after shedding 3.81 percent to P429.
