PSEi sinks to 5,800 level on oil, peso woes

Philippine stocks sank deeper into negative territory on Tuesday as investors stayed cautious amid elevated oil prices and the peso’s continued weakness.

The benchmark Philippine Stock Exchange Index (PSEi) dropped by 0.75 percent, or 44.72 points, to close at 5,896.80.

Philstocks Financial research manager Japhet Tantiangco said sentiment was weighed down by Brent crude prices testing the $110-per-barrel level, raising concerns over inflation and higher operating costs.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the decline pulled the market to a three-week low, or its weakest level since April 30.

“It also brought the PSEi to a five and a half-month low, or since Dec. 4, 2025, although it remained above the intraday low of 5,816.82 recorded on March 23, when the Iran-Middle East war began,” Ricafort said.

The peso’s weak position, which hovered near record lows, also dampened appetite for local equities.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said investor sentiment stayed cautious, with market participants largely adopting a wait-and-see stance due to concerns over inflationary pressures and their impact on the broader economy.

“As a result, subdued participation kept overall market volume muted throughout the session,” Limlingan added.

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Net value turnover reached only P4.71 billion, signaling cautious market participation.

Foreign investors also continued to exit the market, posting net outflows of P680.04 million.

All sectoral indices ended in the red, with the property sector suffering the steepest decline after falling 1.33 percent.