PSEi slides to 5,800 level as investors fear prolonged war
Local stocks tumbled on Monday, dragging the main index back to the 5,800 territory, as escalating conflict between the United States and Iran, dampened investor sentiment.
The Philippine Stock Exchange Index (PSEi) dropped 1.98 percent or 119.44 points, to close at 5,899.18, a new low for this year.
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the Philippine market ended significantly lower as the ongoing war in the Middle East showed no signs of de-escalation.
“Rising oil prices further weighed on the market, heightening concerns over inflation and input costs. As a result, cautious trading prevailed amid expectations of sustained price pressures and potential policy tightening,” Limlingan said.
Philstocks financial research manager Japhet Tantiangco said sell-off came as geopolitical risks intensified, with the United States and Iran exchanging threats over the reopening of the Strait of Hormuz, a key global oil route.
Tantiangco added that uncertainty prompted investors to scale back exposure to riskier assets.
The decline marked a return to the 5,800 territory, one of its lowest levels in more than three months, or since Dec. 4, 2025, when it closed at 5,887.58.
Ron Acoba, chief investment strategist at Trading Edge Consultancy, said the local bourse was weighed down by rising US yields—now at a seven-month high—on oil-driven inflation fears. In turn, oil jitters have dampened prospects of US Federal Reserve rate cuts and even raised bets of a December hike.
Acoba likewise noted that the 3-percent jump in oil prices past $100 and the peso’s slide to new lows against the dollar spurred foreign outflows.
Back home, trading remained active, with total value turnover reaching P7.22 billion.
Foreign investors continued to exit the market, posting net outflows of P1.34 billion.
All sectoral indices ended in the red, with mining and oil stocks taking the biggest hit, plunging 8.71 percent.
Market breadth was negative, as decliners overwhelmed advancers, 167 to 46.
Only two index members managed to post gains for the day. Manila Electric Company rose 1.16 percent, while Aboitiz Equity Ventures Inc. added 0.68 percent.
On the losing end, Converge ICT Solutions Inc. was the worst performer, plunging 8.61 percent to P12.10.
Analysts said the latest drop underscores the market’s sensitivity to external shocks, with investors staying cautious amid ongoing global uncertainties.
