PSEi slips on renewed Mideast conflict

Local stocks ended slightly lower on Wednesday as investors stayed cautious amid renewed geopolitical risks in the Middle East, although foreign buying and strong trading activity helped limit losses.

The benchmark Philippine Stock Exchange Index (PSEi) dipped by 0.07 percent, or 4.35 points, to close at 5,941.36.

Stock brokerage Philstocks Financial Inc. said the local market remained in negative territory as conflict escalated between the United States and Iran.

The US reportedly launched strikes against Iran after Tehran had allegedly downed a US Army helicopter patrolling the Strait of Hormuz. Iran later retaliated by attacking certain Gulf countries.

Luis Limlingan, head of sales at Regina Capital Development Corp., said the Philippine market ended lower as investors shifted to the selling side following renewed attacks in the Middle East.

“Heightened geopolitical tensions dampened risk appetite and triggered across the market. As a result, sentiment turned cautious, weighing on overall market performance,” Limlingan said.

Despite the weak finish, trading activity remained robust. Net value turnover reached P6.66 billion, while foreign investors ended the session as net buyers with inflows amounting to P469.36 million.

Sectoral performance was mixed, with services emerging as the top performer after gaining 1.45 percent. Mining and oil stocks, however, posted the steepest decline, dropping 5.89 percent.