PSEi drops below 6,000 as investors stay cautious
Philippine stocks fell on Tuesday as fading hopes of a peace deal between the United States and Iran kept investors on edge, prompting many to stay on the sidelines amid lingering geopolitical and economic risks.
The benchmark Philippine Stock Exchange Index (PSEi) dropped 0.77 percent or 46.14 points, to close at 5,963.24.
Brokerage Philstocks Financial Inc. said investor sentiment weakened after the US conducted what it described as “self defense” strikes against Iran, tempering expectations of easing tensions in the Middle East.
Luis Limlingan, head of sales at Regina Capital Development Corp., said the Philippine market closed lower even as crude prices eased, with investors maintaining a cautious stance.
“Sentiment was weighed down by local uncertainties, particularly fears that inflation could climb beyond 8 percent fueling speculation of an unusually large 50 basis points rate hike by the Bangko Sentral ng Pilipinas,” Limlingan said. “These concerns reduced the appeal of equities and prompted a shift toward a risk-off posture.”
Trading activity remained subdued, with net value turnover reaching only P4.29 billion as investors continued to assess the impact of the US-Iran conflict and possible stagflation risks.
Foreign investors also remained cautious, ending the session as net sellers with outflows amounting to P820.16 million.
Sectoral indices closed mixed, with mining and oil stocks leading the gainers after rising 1.42 percent. The services sector posted the steepest decline, falling 2.72 percent.
SM Investments Corp. emerged as the day’s top gainer, climbing 1.63 percent to P622 per share.
