PSEi sinks below 6,100 as Middle East conflict flares anew

MANILA, Philippines – Local stocks slid on Monday as renewed US-Iran tensions weighed on sentiment, while weak government infrastructure spending fueled concerns over the country’s growth outlook.

The benchmark Philippine Stock Exchange Index (PSEi) fell 1.64 percent, or 100.33 points, to close at 6,035.02.

READ: Middle East war: Iranians walk out of talks venue after Trump threat

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According to Philstocks Financial Inc. research manager Japhet Tantiangco, investors turned cautious after signs emerged that the interim agreement between the US and Iran was beginning to unravel.

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Tantiangco said concerns escalated after Iran reportedly closed the Strait of Hormuz again amid allegations that the US failed to stop attacks on Lebanon. In response, US President Donald Trump threatened possible military action against Iran.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the PSEi fell as global crude oil prices rebounded slightly, with Nymex crude trading near $77 per barrel.

The market was also weighed down by April public infrastructure spending data, which showed a 52-percent year-on-year decline.

Luis Limlingan, head of sales at Regina Capital Development Corp., said the local bourse ended lower amid broad-based foreign selling across sectors. Meanwhile, the local currency weakened further against the US dollar, breaching the 61 level again.

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READ: PH infrastructure spending remained weak in April

Brisk trading

Trading activity remained robust despite the sell-off.

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Net value turnover reached P8.42 billion, while foreign investors ended the session as net sellers with net outflows amounting to P924.26 million.

Most sectoral indices finished in the red.

The services sector posted the steepest decline, dropping 3.91 percent. Conglomerates were the lone bright spot, gaining 0.58 percent.

Among index members, telecommunications giant PLDT Inc. led gainers after climbing 4.46 percent to P1,148 per share.

Meanwhile, International Container Terminal Services Inc. was the session’s biggest drag, tumbling 5.69 percent to P861.50 apiece.

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Analysts said the broader market reflected the cautious mood as investors weighed the potential economic impact of escalating geopolitical risks and weaker-than-expected government spending, both of which could cloud the outlook for growth in the months ahead. /pai INQ