Article by:
Joann Villanueva
MANILA – Latest developments in the Middle East increased investors' worries on Monday, resulting in the negative close of both the Philippine Stock Exchange index (PSEi) and the peso.
The local bourse's main index shed 0.72 percent to 6,054.05 points, and the broader All Shares by 0.65 percent to 3,386.52 points.
Most of the sectoral gauges also ended the day’s trade on the red, led by the Financials, down 2.35 percent, trailed by Property, 1.54 percent; Mining and Oil, 0.97 percent; Industrial, 0.86 percent; and Holding Firms, 0.35 percent.
Only Services gained during the day after it rose 1.02 percent.
Volume was thin at 789.08 million shares amounting to PHP7.8 billion. Decliners led advancers, 121 to 82, while 69 shares were unchanged.
"Philippine equities closed in the red as renewed geopolitical tensions in the Middle East dampened investor sentiment. Concerns escalated after (US President) Donald Trump threatened Iran a blockade of the Strait of Hormuz, reigniting fears of supply disruptions and a spike in global oil prices," Luis Limlingan, Regina Capital Development Corporation head of sales, said.
He noted that prices of crude oil have breached the USD100 per barrel after the announcement, "raising inflation risks and weighing on risk assets globally."
The local currency also weakened and closed the day at 60.13 to a U.S. dollar, from its 59.97 close Friday last week.
It started the week at 60.25, a depreciation from its 59.75 start in the previous session. It traded between 60.13 and 60.5, bringing the day’s average to 60.37.
Volume went up to USD1.89 billion from USD1.49 billion at the end of last week. (PNA)
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