PSEi plummets to 6,400 level amid Iran conflict

PHILIPPINE STOCKS closed lower on Monday, with the main index sliding back to the 6,400 range as worries over the escalating conflict in the Middle East triggered a sell-off.

The Philippine Stock Exchange index (PSEi) decreased by 2.78% or 184.41 points to close at 6,426.83, while the broader all shares index went down by 2.01% or 73.38 points to end at 3,567.86.

This was the biggest single-day drop posted by the PSEi since it plunged by 4.3% or 261.34 points on April 7, 2025.

It was also the benchmark’s lowest close since Feb. 19’s 6,407.15.

“The local market plunged by the week’s open as investors digested the ongoing conflict between the US and Iran, which is expected to negatively affect the local economy mainly through higher oil prices,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“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 A. Limlingan said in a Viber message.

Oil prices surged 9% on Monday after shipping in the crucial Strait of Hormuz was disrupted by retaliatory Iranian attacks following initial bombing by Israel and the United States that killed Iranian Supreme Leader Ali Khamenei, Reuters reported.

A sustained exchange of counterattacks damaged tankers and sharply disrupted shipments in the Strait of Hormuz, a waterway between Iran and Oman that connects the Gulf to the Arabian Sea.

Most sectoral indices ended lower on Monday. Services slid by 4.11% or 117.20 points to 2,732.86; holding firms plunged by 2.74% or 143.04 points to 5,076.53; industrials retreated by 2.33% or 220.50 points to 9,228.59; financials dropped by 1.77% or 38.56 points to 2,129.64; and property decreased by 0.82% or 18.16 points to 2,176.56.

Mining and oil was the lone gainer, rising by 0.1% or 20.14 points to 19,943.29.

“Only the miners posted gains as investors went for precious metal related stocks amid geopolitical tensions offshore,” Mr. Tantiangco said.

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

Decliners overwhelmed advancers, 159 to 53, while 52 names closed unchanged.

Value turnover dropped to P9.12 billion with 1.19 billion shares traded from the P19.62 billion with 1.23 billion issues that changed hands on Friday.

Net foreign selling was at P784.64 million, a reversal of the P915.72 million in net buying recorded in the previous session. — Alexandria Grace C. Magno with Reuters