PSEi slips as renewed Mideast conflict dents sentiment
MANILA, Philippines – Local stocks ended slightly lower on Wednesday as investors stayed cautious amid renewed geopolitical risks in the Middle East, although foreign buying and strong trading activity helped limit losses.
The benchmark Philippine Stock Exchange Index (PSEi) dipped by 0.07 percent, or 4.35 points, to close at 5,941.36.
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Brokerage Philstocks Financial Inc. said the local market remained in negative territory after tensions escalated between the United States and Iran.
The US reportedly launched strikes against Iran after Tehran allegedly downed a US Army helicopter patrolling the Strait of Hormuz. Iran later retaliated by attacking certain Gulf countries.
Luis Limlingan, head of sales at Regina Capital Development Corp., said the Philippine market ended lower as investors shifted to the selling side following renewed attacks in the Middle East.
“Heightened geopolitical tensions dampened risk appetite and triggered across the market. As a result, sentiment turned cautious, weighing on overall market performance,” Limlingan said.
Robust activity
Despite the weak finish, trading activity remained robust. Net value turnover reached P6.66 billion, while foreign investors ended the session as net buyers with inflows amounting to P469.36 million.
Sectoral performance was mixed, with services emerging as the top performer after gaining 1.45 percent. Mining and oil stocks, however, posted the steepest decline, dropping 5.89 percent.
Among index members, port operator International Container Terminal Services Inc. led the gainers, rising 2.53 percent to P892 per share.
On the other hand, Ayala Corp. was the session’s biggest drag, falling 4.94 percent to P385 apiece.
The market’s decline came as investors assessed the potential economic impact of escalating conflict in the Middle East, particularly on global trade routes and energy markets.
Even so, analysts said continued foreign inflows suggested that some investors were still selectively accumulating Philippine equities despite heightened external risks. /pai INQ
