THE Philippine Stock Exchange index (PSEi) edged lower on Tuesday, falling 0.25 percent or 14.87 points to close at 5,971.98, as investors locked in gains from the previous session while monitoring renewed uncertainty in the Middle East.
Investor sentiment turned cautious after the United States reportedly rejected Iran’s latest counterproposal, while US President Donald Trump warned that the ceasefire between the two countries was weakening.
The developments pushed global oil prices higher and dragged the peso back below the 61-per-dollar level, adding pressure on local equities.
Trading remained subdued, with net value turnover settling at P6.32 billion, slightly below the year-to-date average. Foreign investors were net sellers with outflows amounting to P107.55 million.
Luis Limlingan, head of sales at Regina Capital Development Corp., said the market declined as investors took profits following Monday’s gains.
He added that weaker year-on-year foreign direct investment inflows and the peso’s depreciation also weighed on investor confidence during the session.
Philstocks Financial Inc. research manager Japhet Tantiangco said waning hopes for a peace agreement between the US and Iran dampened sentiment, especially after recent developments signaled rising geopolitical risks.
Sectoral performance was mixed, with mining and oil stocks leading the gains, up 2.09 percent, while industrials suffered the steepest decline at 1.56 percent.
Among index stocks, Aboitiz Equity Ventures, Inc. led the gainers, climbing 3.63 percent to P29.95, while Jollibee Foods Corp. slumped 10.67 percent to P144.00 to become the day’s worst performer.
Peso weakens further
The local currency weakened again amid lingering worries from the Middle East conflict.
The peso weakened by 33 centavos to P61.48 from Monday’s P61.15:$1. It opened at P61.25:$1 and ranged from P61.25 to P61.495.
Trading volume reached P1.512 billion, up from P1.511 billion in the previous session.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso weakened after US President Trump rejected Iran’s latest peace offer.