PSEi slips below 5,800 on US-Iran worries

Philippine stocks fell below the 5,800 level on Monday as renewed tensions between the United States and Iran pushed global oil prices higher.

The benchmark Philippine Stock Exchange Index (PSEi) declined by 0.64 percent, or 37.1 points, to close at 5,788.87.

Philstocks Financial said investors turned cautious after US President Donald Trump had rejected Iran’s conditional proposal to reopen the Strait of Hormuz. This drove oil prices higher, adding pressure on the local market.

Luis Limlingan, head of sales at Regina Capital Development Corp., said this renewed concerns over the prolonged disruption of oil supplies.

“Investors consequently remained cautious, keeping the local market under selling pressure,” Limlingan said.

Thin volume

Elevated treasury yields in the Philippines and abroad also weighed on investor sentiment, Philstocks added.

Trading remained tepid, with net value turnover reaching P4.9 billion.

Foreign investors, however, provided some support to the market. They ended the session as net buyers, posting net inflows of P75.47 million.

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Property stocks were the only sectoral gainers, inching up by 0.06 percent.

All other sectors finished in negative territory. Mining and oil firms recorded the steepest decline as the sectoral index plunged by 3.25 percent.

Ayala Land Inc. led the index gainers, climbing by 1.32 percent to P15.32 per share.

Meanwhile, DigiPlus Interactive Corp. was the biggest index laggard. Its shares sank by 6.47 percent to P7.95 each after its setback in Brazil.