Stocks snap six-day run on ME, growth concerns

PHILIPPINE SHARES on Thursday snapped their six-day winning run as investors turned cautious over renewed tensions in the Middle East (ME) and weakening economic prospects.

The Philippine Stock Exchange index (PSEi) dropped by 0.82% or 51.90 points to close at 6,223.87, while the broader all shares index fell by 1.01% or 34.59 points to end at 3,370.56.

“The local market pulled back as investors booked gains after six days of rallying. Reignited tensions between the US and Iran also weighed on the market. This came following US President Donald J. Trump’s remarks saying that the ceasefire with Iran is already over,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

The US military said on Wednesday it launched fresh strikes on Iran to keep the Strait of Hormuz open to shipping, triggering Iranian attacks on Kuwait and Bahrain in the latest escalation to derail efforts to end the war, Reuters reported.

The latest round of attacks, which the US said was carried out in response to Tuesday’s assault on three cargo ships transiting the strait, came hours after Mr. Trump said he believed an interim ceasefire with Iran to be “over.”

The latest exchange of strikes appeared to dim hopes of turning a memorandum of understanding signed on June 17 into a permanent deal to end the war, which began with US-Israeli attacks on Iran on Feb. 28.

“The downgrade in the IMF and ADB’s Philippine economic growth projections for 2026 also dampened sentiment,” Mr. Tantiangco added.

In its latest World Economic Outlook, the International Monetary Fund (IMF) trimmed its 2026 gross domestic product (GDP) growth forecast for the Philippines to 3.9% from 4.1% previously. This is still within the government’s 3.5%-4.5% target.

The Asian Development Bank (ADB), in its Asian Development Outlook July 2026 report, lowered its own GDP growth forecast to 3.8% from 4.4% previously.

Majority of sectoral indices closed in the red on Thursday. Financials slid by 2.13% or 41.42 points to 1,898.12; holding firms sank by 2.05% or 91.43 points to 4,357.53; industrials dropped by 1.43% or 121.54 points to 8,323.14; mining and oil fell by 1.38% or 200 points to 14,219.32; and property retreated by 1.31% or 24.84 points to 1,869.85.

Meanwhile, services rose by 0.85% or 28.65 points to 3,394.48.

Decliners overwhelmed advancers, 111 to 68, while 62 names were unchanged.

“Only four index members closed in positive territory today led by International Container Terminal Services, Inc., climbing 2.26% to P971.50. Ayala Corp. was the main index laggard, falling 3.51% to P468,” Mr. Tantiangco said.

Value turnover rose to P6.19 billion on Thursday with 1.49 billion shares traded from the P5.06 billion with 820.31 million issues that changed hands on Wednesday.

Net foreign buying increased to P799.16 million from P789.03 million. — Alexandria Grace C. Magno with Reuters