Philippine shares plunged on Monday as heightened geopolitical tensions in the Middle East rattled investor sentiment, prompting a broad risk-off move across local equities and currency markets.
The sell-off came after the United States launched strikes on three Iranian nuclear facilities over the weekend, marking a significant escalation in the conflict between Israel and Iran.
Tehran retaliated with a wave of missile attacks against Israel, reportedly killing at least 24 people and damaging key infrastructure — raising fears of a wider regional war that could destabilize global oil flows.
The benchmark PSEi fell 1.92 percent, or 121.49 points, to close at 6,218.28, its steepest single-day loss in nearly two weeks.
The broader All Shares tumbled 1.44 percent to 3,706.56. Market breadth was decisively negative, with decliners outpacing advancers 142 to 60.
“The geopolitical overhang has significantly increased,” Michael Ricafort, chief economist at Rizal Commercial Banking Corp. said.
“Markets are now factoring in potential supply chain disruptions and oil price shocks — both of which could derail global growth,” he added.
Total turnover reached P6.29 billion on 73,634 trades involving more than 1 billion shares. Despite the heavy domestic selling, foreign investors were net buyers by P108.27 million, signaling selective bargain hunting amid the turmoil.
Iran has warned that the strikes on its nuclear infrastructure broaden the scope of what it considers “legitimate” targets, and cautioned Washington of “heavy consequences” — a statement that has deepened investor unease.
Alfred Benjamin Garcia, head of research at AP Securities Inc., said markets are increasingly pricing in the risk of a disruption in global oil supply chains. “The Strait of Hormuz remains a key flashpoint. Any blockade or attack there could trigger a sustained spike in oil prices,” he said.
Currency markets also came under pressure. The Philippine peso weakened to 57.58 per US dollar, down from Friday’s close of 57.17.
The local unit opened at 57.25 and touched an intraday low of 57.655 — its weakest level since late March 2025.
“The peso’s slide reflects both rising oil import costs and safe-haven dollar demand,” Japhet Tantiangco, research manager at Philstocks Financial Inc. said. “A prolonged conflict could worsen the current account outlook and accelerate capital outflows.”
With geopolitical risk now a key driver of market direction, analysts said global investors will remain cautious — closely tracking developments in the Middle East for signs of further escalation or de-escalation.
