The Philippine Stock Exchange index (PSEi) plummeted more than 2 percent Wednesday on rising tension in the Middle East.
The PSEi closed at 6,307.84, down 137.54 points or 2.13 percent, while the broader all shares index ended at 3,485.62, lower by 72.09 points or 2.03 percent.
AB Capital Securities said increasing geopolitical tension between the United States and Iran has kept risk sentiment cautious. Investors were worried about the significant impact of conflict in the Middle East, particularly a steep increase in oil prices that could push the inflation rate higher.
All sectors ended in negative territory, led by mining and oil, which plunged 6.37 percent. Property followed with a 2.5 percent drop, and holding firms declined 2.47 percent.
Trading volume was strong, with value turnover reaching P8.24 billion. Foreign investors, however, were net sellers, with outflows at P1.31 billion.
There were only three index gainers for the day, led by International Container Terminal Services Inc., which climbed 0.85 percent to P715. DigiPlus Interactive Corp., which has been on an upward trend in recent sessions, was the worst performer as its share price declined 8.33 percent to P16.94.
The peso closed lower at 58.57 to the U.S. dollar Wednesday, down from 58.435 on Tuesday.
Stock markets across Asia were pummeled Wednesday as investors began panic-selling on fears the Israel-US war on Iran will fan inflation and hammer the global economy.
The bloodshed’s impact on markets was felt most in Seoul, where the Kospi tanked more than 12 percent as investors unwound their tech positions built up in recent months on the back of the AI boom.
The selling came as oil prices rallied more than two percent on the fifth day of attacks on the Islamic republic, with observers warning that the choking of supplies from the Middle East could fan inflation and shatter hopes for more interest rate cuts.
US President Donald Trump pledged that if needed, the navy would escort oil tankers through the Hormuz Strait — through which about a fifth of global oil supplies flow — and ordered Washington to provide insurance for shipping.
On Wednesday Iran’s Revolutionary Guards said the route was “under the complete control of the Islamic Republic’s Navy”.
Iranian strikes on several neighbors threatened to broaden the conflict, while uncertainty about how long the war would take added to upward pressure on crude prices, with both main contracts climbing around three percent Wednesday.
Both main contracts have soared around 15 percent since Friday, before the attacks began. Brent hit a high above $85 Tuesday and West Texas Intermediate topped out near $88. Some analysts warn they could soon hit $100. With AFP
