Philippine equities ended the week lower as escalating tensions in the Middle East weighed on global investor sentiment and pushed oil price fears back to the forefront of markets.
The Philippine Stock Exchange Index (PSEi) fell 0.89% (−54.64 points) to close at 6,058.94, hovering near the psychologically important 6,000 level. The broader All Shares Index also declined 0.68% to 3,382.11.
The sell-off mirrored weakness across global markets as investors reacted to geopolitical risks and the potential for higher inflation driven by surging energy prices.
Geopolitics Drives Risk-Off Sentiment
Investor caution intensified after Iran signalled that the Strait of Hormuz could remain closed, raising fears of disruptions to global oil supply.
The Strait of Hormuz is one of the world’s most critical oil shipping routes, and any prolonged closure could push crude prices sharply higher. Some analysts warn that oil prices could surge toward $200 per barrel in a worst-case scenario.
Higher oil prices would likely fuel inflation globally and may force central banks to maintain tighter monetary policy for longer.
This backdrop triggered a risk-off mood among investors, with foreign funds turning net sellers in Philippine equities.
Peso Weakens Further
Currency markets reflected similar caution.
The Philippine peso weakened to 59.73 per US dollar, slipping from 59.38 the previous day and marking a fresh historic-low close.
The peso traded within a 59.41–59.75 range during the session, with turnover reaching $2.23 billion.
A weaker currency adds another layer of concern for investors as it can increase imported inflation, particularly through higher energy costs.
Sector Performance
Most sectors finished the session in negative territory.
Sector moves
- Industrial: +0.16% (only sector to gain)
- Mining & Oil: −1.81% (largest drop)
- Services: −1.24%
- Holding Firms: −1.16%
- Financials: −0.72%
- Property: −0.72%
Market breadth remained negative, with 108 decliners vs 68 advancers.
Notable Movers
Top gainer
- Emperador (EMI) +5.13% to ₱15.58
Major laggard
- Jollibee Foods Corp (JFC) −4.52% to ₱190
Among actively traded stocks:
- ICTSI −1.44%
- SM Investments −1.39%
- BPI −1.96%
- DigiPlus −4.41%
Energy-related names showed mixed performance, with Semirara Mining and Power (SCC) rising 4.71%.
Trading Activity
Market liquidity remained thin.
- Volume: 886 million shares
- Value turnover: ₱13.84 billion
- Net turnover (excluding block sales): about ₱4.8 billion
Analysts said the subdued trading activity reflects a wait-and-see stance among investors amid geopolitical uncertainty.
Outlook
Philippine equities are likely to remain sensitive to developments in the Middle East in the near term.
Key risks investors are watching include:
- Potential oil supply disruptions
- Inflation pressure from higher energy prices
- Possible policy tightening globally
- Continued peso depreciation
If tensions escalate further or oil prices spike sharply, regional markets — including the Philippines — could face renewed volatility.
For now, the 6,000 level on the PSEi will be closely watched as a key psychological support for the local market.