PHILIPPINE shares could continue to slide as Ukraine declared a state of emergency after Russia’s advance into the state, dampening investor sentiment across the globe.

The bellwether Philippine Stock Exchange index (PSEi) went down by 151.98 points or 2.06% to close at 7,212.23 on Thursday, while the broader all shares index fell by 75.01 points or 1.91% to 3,842.85.

Week on week, the PSEi fell by 206.56 points from its finish of 7,418.79 on Feb 18.

Philippine financial markets were closed on Friday in commemoration of the People Power Revolution anniversary.

“The market was heavily downed after [Russian President Vladimir] Putin ordered military operations for the invasion of Ukraine. This will further heighten market volatility that may further aggravate… global inflation with further disruptions in oil and other supplies,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message.

“The deployment of Russian forces in Ukraine dragged down investor sentiment across all assets, with Philippine shares included,” AAA Southeast Equities, Inc. President William M. Cabangon said in a Viber message. “We await the response of the Western powers to the situation.”

Mr. Cabangon added that the non-working holiday on Friday incentivized many to sell their holdings as there was a real risk that the situation would worsen over the long weekend.

On Saturday, Ukrainian leader Volodymyr Zelenskiy said Ukraine’s forces were repelling Russian troops advancing on Kyiv, as Russian forces renewed their assault and attacked the capital and other cities with artillery and cruise missiles.

Western allies are preparing sweeping new sanctions against Russia, including banishing its key banks from the main global payments system, drawing thanks from Ukraine on Sunday as its forces battled advancing Russian troops, Reuters reported.

The biggest assault on a European state since World War Two threatens to upend the continent’s post-Cold War order.

Analysts said the Russia-Ukraine crisis will continue to affect the market this week.

“Volatility is seen, with global investors attuned to headlines unfolding in Russia-Ukraine and its consequent effect on world crude prices,” online brokerage said in a report. put the PSEi’s immediate support at 7,300 and resistance at 7,400 to 7,430.

“Expect positioning at intraday lows, as some players seize on weakness to selectively position for prospects this year. Steer clear for possible supply pressure on select stocks, given the month-end portfolio rebalancing,” the online brokerage said.

Meanwhile, Diversified Securities’ Mr. Pangan placed the PSEi’s immediate support at 7,000 and resistance at 7,400. — Luisa Maria Jacinta C. Jocson with Reuters