Philippine shares decline on fresh US-Iran strikes

PHILIPPINE STOCKS slipped on Wednesday as renewed hostilities between the United States and Iran dampened hopes for a lasting peace deal, weighing on investor sentiment.

The Philippine Stock Exchange index (PSEi) edged down by 0.07% or 4.35 points to close at 5,941.36, while the broader all shares index fell by 0.62% or 20.77 points to end at 3,304.51.

“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 selling across the market. As a result, sentiment turned cautious, weighing on overall market performance,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The local market closed in the negative territory amid reigniting tensions in the Middle East. The US launched strikes against Iran as the latter allegedly downed a US Army helicopter patrolling the Strait of Hormuz. Iran in response attacked certain Gulf countries,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

Asian stocks tumbled and oil prices rose as Iran and the US engaged in their biggest exchange of hostilities since a ceasefire was agreed in April, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped about 3%. Japan’s Nikkei fell 2% while the tech-heavy South Korean KOSPI slumped nearly 7% in a volatile week where artificial intelligence stocks have come under pressure.

European shares held their ground on Wednesday, as investors clung to hopes for peace in the Middle East despite tensions flaring up again, while focus was also on the European Central Bank’s upcoming monetary policy decision.

Crude oil prices hovered near $90 a barrel. Traders, however, focused on remarks by US President Donald J. Trump that a deal to reopen the Strait of Hormuz, a vital artery for global oil supplies, was close.

Back home, most sectoral indices closed in the red. Mining and oil plunged by 5.89% or 981.28 points to 15,666.11; holding firms sank by 2.72% or 119.12 points to 4,255.99; industrials dropped by 1.08% or 91.40 points to 8,300.14; and property fell by 0.55% or 9.98 points to 1,800.41.

Meanwhile, services rose by 1.44% or 45.32 points to 3,173.20, and financials went up by 0.83% or 14.97 points to 1,804.30.

Decliners overwhelmed advancers, 133 to 49, while 57 names closed unchanged.

“International Container Terminal Services, Inc. was the day’s index leader, climbing 2.53% to P892. Ayala Corp. was the main index laggard, falling 4.94% to P385,” Mr. Tantiangco said.

Value turnover decreased to P7.22 billion on Wednesday with 662.06 million shares traded from the P9.33 billion with 853.82 million issues that changed hands on Tuesday.

Net foreign buying was at P469.36 million, a turnaround from the P155.98 million in net selling recorded in the previous session. — Alexandria Grace C. Magno with Reuters