PSEi slips on renewed Mideast war jitters
Local stocks retreated on Monday as renewed Middle East war jitters dampened investor sentiment.
The Philippine Stock Exchange Index (PSEi) fell by 0.72 percent or 44.16 points, to close at 6,054.05.
Philstocks financial research manager Japhet Tantiangco said the broader market pulled back as concerns resurfaced over the ongoing conflict. This was particularly after the United States and Iran failed to reach a deal, alongside reports of a planned blockade of the Strait of Hormuz.
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said geopolitical concerns escalated as US President Donald Trump threatened Iran with a blockade of the Strait of Hormuz. This reignited fears of supply disruptions and a spike in global oil prices.
“Crude has already surged above $100 per barrel following the announcement, raising inflation risks and weighing on risk assets globally,” Limlingan added.
Back home, trading activity remained moderate, with net value turnover reaching P6.57 billion. Foreign investors were net sellers, posting outflows of P216.89 million.
Sectoral performance was mostly negative, with only the services index ending in the green, up 1.02 percent.
Banking stocks led the decline, shedding 2.35 percent, reflecting risk-off sentiment among investors.
Market breadth was likewise weak, as decliners outpaced advancers, 121 to 82.
Only four index members finished higher for the day. Aboitiz Equity Ventures, Inc. emerged as the top gainer, climbing 4.03 percent to P31.
On the other hand, JG Summit Holdings, Inc. was the worst performer, dropping 5.23 percent to P27.20.
Ron Acoba, chief investment strategist at Trading Edge Consultancy, said that for the remainder of the week, the PSEi may move sideways with a downward bias, particularly if crude oil prices stay above $100.
“Investors are likely to remain cautious and await positive developments in the Middle East before shifting back to a risk-on stance,” Acoba said.
Analysts said the latest decline underscores how geopolitical risks continue to sway the local market, with investors remaining cautious amid uncertainties in global oil supply and economic stability.
