Local shares tumbled by nearly 2 percent on Monday as global markets grappled with ongoing geopolitical tensions and economic uncertainties.
The peso also depreciated against the US dollar on Monday, closing at 57.58 from 57.17 on June 20.
The 30-company PhilippineStock Exchange index dropped 192 points, or 1.92 percent, to close at 6,218.28, while the broader all-shares index lost 54 points, or 1.44 percent, to settle at 3,706.56
Analysts said the market’s performance reflect investor jitters amid rising geopolitical tension after US attacked Iran nuclear sties.
Rizal Commercial Banking Corp. chief economist said investors are concerned that the escalating war could lead of higher local fuel price and could also resulted in higher importation costs and some pick up in overall inflation.
Investors also are anxious about Iran’s possible response to US’ attacks as this could push world crude prices of $100 per barrel.
“The local market dropped as investors reacted to the escalation of the Israel-Iran conflict upon the involvement of the US,” Philstocks Financial Inc. research head Japhet Tantiangco said.
“Investors dealt with the economic repercussions of the escalation including the outlook of higher oil prices and depreciation of the peso,” he said.
All indices ended in negative territory, with mining and oil dropping the most, down by 3.48 percent. Services also dropped by 2.57 percent and financials by 2.4 percent.
