PSEi slips, peso back to P60:$1 level as Hormuz standoff escalates

Philippine financial markets opened the week on a negative note, as the conflict in the Middle East escalated anew over concerns of possible supply disruptions due to threats of blockades in the Strait of Hormuz.

The Philippine peso depreciated back to the P60:$1 level, as it shed 16.5 centavos to close at P60.135:$1 from last Friday’s finish of P59.97:$1.

“The US dollar/peso exchange rate again corrected higher for the second straight trading day amid some hedging activities related to country’s purchases of imported crude oil/fuel/petroleum to further increase local supplies/inventories,” Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said in a mobile message.

The Philippine Stock Exchange index (PSEi), meanwhile, lost 44.16 points or 0.72% to 6,054.05, while the broader All Shares shed 22.01 points or 0.65% to 3,386.52.

Nearly all sectoral indices posted declines, except for services which closed higher by 1.02%.

More than 789.083 million shares, valued at P7.797 billion, changed hands. Decliners led advancers, 121 to 82, while 69 issues were unchanged.

“Philippine equities closed in the red as renewed geopolitical tensions in the Middle East dampened investor sentiment,” Regina Capital Development Corp. head of sales Luis Limlingan said in a separate mobile message.

“Concerns escalated after Donald Trump threatened Iran a blockade of the Strait of Hormuz, reigniting fears of supply disruptions and a spike in global oil prices,” he added.

US President Donald Trump over the weekend said the US Navy would immediately blockade the strait after talks with Tehran failed to reach a deal to end the war.

The US military said it would begin a blockade of all maritime traffic entering and exiting Iranian ports and coastal areas on Monday, "impartially" blocking "vessels of all nations entering or departing Iranian ports and coastal areas, including all Iranian ports on the Arabian Gulf and Gulf of Oman."

The Department of Foreign Affairs, meanwhile, also said on Monday that Philippine-flagged vessels are assured of safe passage through the Strait of Hormuz after it spoke with Iran.

Prior to this, Trump agreed to a ceasefire with Iran, subject to Iran’s agreement to pause its blockade of oil and gas supplies through the strait. — BM, GMA News