Heavy foreign selling and renewed geopolitical tensions in the Middle East dragged the local stock market lower on Monday, driving investors to lock in gains amid mounting risk aversion and a weakening peso.
The benchmark PSEi dropped 0.58 percent, or 37.01 points, to close at 6,358.58, reflecting regional unease over the conflict between Israel and Iran. The broader All Shares also declined, shedding 0.45 percent or 16.86 points to 3,768.45.
“Risk aversion continues to dominate sentiment, with the ongoing Israel-Iran conflict weighing heavily on investor outlook,” Seth Pangan, trader at Diversified Securities Inc., said.
Losers outnumbered gainers 110 against 88, while 50 stocks were unchanged.
Trading volume reached 1.07 billion shares, valued at P8.82 billion, across 634,846 transactions.
Data from the exchange showed substantial foreign outflows, with net foreign selling totaling P2.74 billion. Total foreign buying stood at P2.41 billion against P5.15 billion in selling.
Japhet Tantiangco, senior analyst at Philstocks Financial Inc., warned that global geopolitical unrest may push world oil prices higher, aggravating the country’s inflationary pressures.
“The peso’s continued depreciation is also a drag on sentiment, especially with rising import costs and concerns over capital outflows,” he said.
The peso closed at 56.415 to the US dollar on Monday, weakening from 56.21 on Friday. It opened at 56.25, touched a high of 56.25 and a low of 56.61. Total trade volume reached $1.3 billion.
Sectoral performance was mixed. Mining and oil led the gainers with a 1.5-percent rise, benefiting from safe-haven interest in commodities.
In contrast, the property and holding firms sectors both declined 1.19 percent, hit by economic uncertainty and pressure from foreign selling.
