Stocks retreat as conflict keeps market cautious
PHILIPPINE STOCKS continued to retreat on Tuesday as investors chose to stay on the sidelines amid continued uncertainty over the Middle East conflict.
The benchmark Philippine Stock Exchange index (PSEi) fell by 0.67% or 40.95 points to close at 6,013.10, while the broader all shares index went down by 0.27% or 9.40 points to end at 3,377.12.
“The local market extended its decline as investors continue to worry over elevated oil prices and the inflation risks it poses. This comes as tensions in the Middle East continue with the US blockading the Strait of Hormuz,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
“The Philippine market closed lower as buying activity stayed on the sidelines, with investors awaiting further developments surrounding tensions in the Middle East… Overall, cautious positioning prevailed as uncertainty continues to limit risk appetite,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Value turnover decreased to P5.92 billion on Tuesday with 1.48 billion shares traded from the P7.8 billion with 789.08 million issues that changed hands on Monday.
Other Asian stocks advanced while oil prices and the safe-haven dollar fell on Tuesday as investors banked on a resolution to the Middle East war even as the US blocked Iran’s ports after the collapse of peace talks over the weekend, Reuters reported.
Sources told Reuters that Washington and Tehran have left the door open to dialogue, and a US official said there was forward motion on trying to get to an agreement.
The US military began a blockade of Iran’s ports, angering Tehran and adding uncertainty around the crucial waterway, though shipping data showed a US-sanctioned Chinese tanker passed through the Strait of Hormuz on Tuesday.
“Market sentiment was also weighed down by reports that the Philippines lags behind its ASEAN peers in the FDI Confidence Index,” Mr. Limlingan added.
The Philippines fell to 18th out of 25 emerging markets in the 2026 Foreign Direct Investment (FDI) Confidence Index by Kearney with a score of 1.4635. This was the third straight year the Philippines’ ranking declined in the index. It ranked 16th in 2025, 13th in 2024 and 12th in 2023.
Most sectoral indices closed lower. Services slid by 1.44% or 40.98 points to 2,793.69; holding firms sank by 1.36% or 64.24 points to 4,646.79; property dropped by 0.11% or 2.27 points to 2,005.71; and financials slipped by 0.05% or 1.05 points to 1,879.04. Meanwhile, mining and oil jumped by 1.02% or 183.37 points to 18,023.66, and industrials went up by 0.75% or 65.65 points to 8,777.59.
Advancers beat decliners, 110 to 93, while 61 names closed unchanged.
“Monde Nissin Corp. was the day’s index leader, jumping 6.73% to P6.98. DigiPlus Interactive Corp. was at the tail end, falling 5.39% to P15.80,” Mr. Tantiangco said.
Net foreign selling climbed to P446.77 million from P216.89 million in the previous session. — Alexandria Grace C. Magno with Reuters
