PSEi tumbles on fading peace hopes
Philippine stocks fell deeper into the red on Thursday as investors turned cautious over the escalating conflict between the United States and Iran, which dampened hopes for a possible peace agreement and pushed oil prices higher.
The benchmark Philippine Stock Exchange Index slid 1.73 percent or 103.30 points to close at 5,859.94.
Philstocks Financial Inc. said sentiment weakened after the latest exchange of military force between the United States and Iran raised concerns over prolonged geopolitical instability and its impact on global energy markets.
Luis Limlingan, head of sales at Regina Capital Development Corp., said rising oil prices also weighed on the market, prompting broad-based selling pressure across sectors.
“Investors remained cautious amid fears that prolonged geopolitical tensions could further fuel inflationary risks and market volatility,” Limlingan said.
The broader market remained subdued, with net value turnover settling at P4.76 billion, reflecting cautious trading activity.
Foreign investors also continued to pull funds out of local equities, ending the session with net outflows of P517.08 million.
All sectoral indices finished in negative territory, led by conglomerates, which dropped 2.62 percent.
Only three members of the benchmark index managed to post gains. GT Capital Holdings Inc. emerged as the top gainer, climbing 0.67 percent to P478.20.
DigiPlus Interactive Corp. was the session’s biggest loser, tumbling 6.46 percent to P11 apiece.
Analysts said the rise in global oil prices added to market concerns as higher energy costs could stoke inflation and weigh on economic growth, prompting investors to stay on the sidelines.
