THE stock market tumbled while the peso weakened back to the P58:$1 level as investors reacted to renewed conflict in the Middle East, triggering a risk-off sentiment across financial markets.
The Philippine Stock Exchange index (PSEi) dropped 184.41 points, or 2.79 percent, as selling pressure intensified.
Meanwhile, the peso depreciated by 53.5 centavos to close at P58.20 against the US dollar.
The local currency opened at P57.85 and moved within a P57.85 to P58.20 range during the session. Trading volume rose to P2.244 billion, higher than Friday’s P1.503 billion, reflecting heightened market activity.
Rizal Commercial Banking Corp. chief economist Michael Ricafort attributed the peso’s weakness to geopolitical developments after the United States and Israel launched strikes against Iran over the weekend. Iran reportedly retaliated by targeting Arab states hosting US military assets.
Tensions further escalated on Monday when Israel launched fresh strikes on Lebanon following attacks by Hezbollah.
Ricafort noted that uncertainty over the duration and extent of the conflict pushed global crude oil prices to new eight-month highs. Elevated oil prices, he warned, could translate into higher domestic pump prices and renewed inflationary pressures.
Luis Limlingan, head of sales at Regina Capital Development Corp., said the peso’s renewed weakness dampened investor confidence. He added that some market participants shifted toward commodity-backed safe-haven assets such as gold and oil.
Philstocks Financial Inc. research manager Japhet Tantiangco said the PSEi’s sharp decline reflected heightened risk aversion, with investors trimming exposure amid geopolitical uncertainty.
Trading remained active, with net value turnover reaching P7.50 billion. Foreign investors were net sellers, unloading P784.64 million worth of shares.
Among sectoral indices, only mining and oil posted gains, edging up 0.10 percent as investors sought defensive exposure to precious metal-related equities. Services suffered the steepest losses, plunging 4.11 percent.
Market breadth was negative, with 159 decliners outpacing 53 advancers, while 52 issues remained unchanged. #END
NEWS SOURCE: The Manila Times
