Stocks extend losses as market weighs war risks

PHILIPPINE STOCKS declined for the fourth straight day on Wednesday as concerns over the economic impact of the Middle East war kept investors gloomy.

The Philippine Stock Exchange index (PSEi) slipped by 0.05% or 3.4 points to close at 5,893.40, while the broader all shares index fell by 0.22% or 7.67 points to end at 3,339.88.

This was the PSEi’s lowest finish in nearly three weeks or since it closed at 5,833.64 on April 30.

“The local market ended flat as investors stayed cautious after President Marcos flagged risks of stagflation amid lingering economic pressures. Concerns over higher oil prices caused by global supply chain disruptions continued to weigh on sentiment, raising worries about sustained inflation and slower growth,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The local market’s sideways movement ended in the negative territory, taking cues from Wall Street’s overnight decline. This comes following the rise in the US long term treasury yields. Lingering concerns including the elevated global oil prices, weak local currency, and stagflation risks also weighed on investor sentiment,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

President Ferdinand R. Marcos, Jr. on Monday said the country could face stagflation due to the prolonged Iran conflict as it slows economic growth and pushes up inflation.

Headline inflation quickened to a near three-year high of 7.2% in April from 4.1% in March due to soaring fuel prices. This was the fastest print since 7.6% in March 2023.

Meanwhile, gross domestic product (GDP) grew by just 2.8% in the first quarter, slowing from the 5.4% expansion in the same quarter last year and the revised 3% GDP growth in the fourth quarter of 2025. The government blamed the slump on the economic fallout from a corruption scandal and the situation in the Middle East.

Sectoral indices closed mixed on Wednesday. Services rose by 0.32% or 9.72 points to 2,990.37; property increased by 0.17% or 3.36 points to 1,911.13; and holding firms went up by 0.09% or 4.05 points to 4,372.31.

Meanwhile, industrials declined by 0.79% or 68.70 points to 8,577.39; financials dropped by 0.56% or 9.99 points to 1,758.63; and mining and oil went down by 0.32% or 58.04 points to 17,558.77.

Decliners outnumbered advancers, 111 to 74, while 59 names were unchanged.

“Ayala Land, Inc. was the day’s top index gainer, climbing 1.76% to P15. ACEN Corp. was the main index laggard, falling 4.62% to P3.10,” Mr. Tantiangco said.

Value turnover went up to P5.67 billion on Wednesday with 1.24 billion shares traded from the P5.36 billion with 1.21 billion issues that changed hands on Tuesday.

“Trading remained subdued as investors held back ahead of clearer policy direction and upcoming economic data,” Mr. Limlingan said.

Net foreign selling decreased to P115.32 million from P680.04 million in the previous session. — Alexandria Grace C. Magno