Middle East conflict drags PSEi, peso

Philippine markets weakened on Monday, as the overall market sentiment was dragged by the growing conflict between the United States and Iran, with a growing number of casualties.

The local stock barometer PSEi lost 184.91 points or 2.79% to 6,426.83, while the broader All Shares index declined by 73.38 points or 2.02% to 3,567.86.

“The local index closed sharply lower as escalating global conflict triggered a broad-based sell-off across sectors, dampening overall market sentiment,” Regina Capital Development Corp. head of sales Luis Limlingan said in a mobile message.

Nearly all major sectoral indices declined, except for mining and oil which gained 20.14 points or 0.10% to 19,943.29.

This comes amid the ongoing conflict in the Middle East, as US-Israeli airstrikes killed Iranian Supreme Leader Ayatollah Ali Khamenei over the weekend, which American President Donald Trump celebrated. Iranian state media later confirmed the death.

Trump earlier on Monday (Sunday Washington time) that combat operations in Iran would continue until all objectives are achieved, as he confirmed that three US service members were killed and there would likely be more casualties.

“Risk-off sentiment prevailed throughout the session, with investors trimming exposure amid heightened geoplitical uncertainty, while some rotated into commodity-backed assets such as gold and oil, which are traditionally viewed as defensive hedges during market stress,” Limlingan said.

More than 1.192 billion shares, valued at P9.124 billion, changed hands. Decliners led advancers, 159 to 53, while 52 issues were unchanged.

The Philippine peso, meanwhile, shed 53.5 centavos to P58.2:$1 from last Friday’s finish of P57.665:$1.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort also attributed Monday’s depreciation to the heightened geopolitical risks in the Middle East.

“That led to higher global crude oil prices to new eight-month highs that could lead to higher local fuel pump prices and some pick up local inflation, risk of disruptions on the global oil supply chains, risk of escalation/missile attacks/conflicts/damage spreading to other countries in the Middle East; uncertainties on Trump’s alternative tariffs,” he said in a separate message. —LDF, GMA Integrated News