PSEi keeps sliding amid Middle East woes

Philippine stocks slipped further on Monday as escalating tensions in the Middle East, high oil prices and rising local treasury yields kept investors on the sidelines.

The benchmark Philippine Stock Exchange Index (PSEi) shed 0.21 percent, or 12.12 points, to close at 5,843.79.

Luis Limlingan, head of sales at Regina Capital Corp., said the local bourse slipped in today’s session as selling pressure remained intact despite the index holding around the 5,800 level.

“Market participants remained on the defensive as the ongoing exchange of threats between the United States and Iran heightened geopolitical uncertainty and investor caution,” Limlingan said.

“Concerns over a possible rebound in crude oil prices also kept sentiment subdued, given the potential impact on inflation and economic growth,” Limlingan added.

Trading remained tepid, with net value turnover reaching P5.61 billion.

Foreign investors were also net sellers, recording net outflows of P860.88 million.

Most sectoral indices ended in the red. Conglomerates were the lone bright spot, gaining 1.76 percent.

Industrials suffered the steepest decline at 1.5 percent.

Ayala Corp. led index gainers, surging 5.13 percent to P533 per share.

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Semirara Mining and Power Corp., meanwhile, was the biggest index laggard, tumbling 7.02 percent to P16.70.

The continued weakness came after the PSEi plunged 1.72 percent on Friday, when rising treasury yields also pressured the market.

Analysts said higher yields tend to make equities less attractive as investors weigh returns from stocks against fixed-income assets.

The latest decline brought the PSEi deeper below the 6,000 level as investors remained cautious over geopolitical risks, higher energy costs and domestic interest rates.