A MAJOR INDEX fell to a more than four-month low on Monday as the war in the Middle East escalated, the market worsened due to economic collapse due to the conflict.
The benchmark Philippine Stock Exchange index (PSEi) fell 1.73% or 103.34 points to close at 5,869.49, while the broader index of all shares fell 1.19% or 40.01 points to end at 3,295.85.
This was the PSEi’s worst close so far this year and its lowest close since ending at 5,813.71 on November 19.
“The Philippine market opened the week lower as the war in the Middle East entered its fifth week, the conflict continued to escalate despite ongoing efforts to reach a diplomatic solution,” said Regina Capital Development Corp. Head of Sales Luis A. Limlingan in a Viber message.
“Prolonged tensions continue to weigh on market risk, as both geopolitical and economic factors continue to dampen investor sentiment. External uncertainty and macroeconomic pressures continue to drive cautious trading behavior across markets.”
Research Manager of Philstocks Financial, Inc. Japhet Louis O. Tantiangco in a Viber message said the market started the shortened trading week on a sour note amid fading hopes that the conflict would subside. “Global oil prices remain high while the peso depreciates, further raising concerns about the Philippines’ inflation outlook.”
Israel’s military said on Monday that Iran had launched a wave of missiles at Israel, and the attack was the second from Yemen since the start of the US-Israel war, Reuters reported.
The latest attack came a day after President Donald J. Trump said the US and Iran were meeting “directly and indirectly” and that Iran’s new leaders were being “very reasonable,” as more US troops arrived in the region.
Stocks fell in Asia on Monday as investors braced for protracted conflicts, which have raised inflation and the risk of a global recession.
Meanwhile, oil prices look poised to extend their gains. Brent crude futures jumped $2.43, or 2.16%, to $115 a barrel by 0342 GMT after settling 4.2% higher on Friday.
Most of the industry indices were closed on Monday. Financials fell 3.25% or 61.41 points to 1,827.44; mining and oil sank by 2.41% or 380.76 points to 15,380.12; holding companies fell 2.30% or 106.29 points to 4,515.32; the commodity fell by 1.89% or 37.36 points to 1,936.23; while industrials fell by 0.97% or 86.26 points to 8,749.35.
Meanwhile, services rose 0.03% or 0.83 point to 2,719.12.
Decliners outnumbered promoters, 126 to 74, with 60 names remaining unchanged.
Value turnover dropped to P8.29 billion on Monday with 746.28 million shares traded from P8.95 billion and 2.47 billion shares that changed hands on Friday.
Total exports reached P1.55 billion from P95.54 million in the previous period. – AGC Magno with Reuters
