The Philippine Stock Exchange index (PSEi) fell by 0.82%, losing 51.90 points to close at 6,223.87 on Thursday, marking the end of a six-day rally.
Investors turned cautious due to renewed tensions in the Middle East and recent downgrades in economic growth forecasts from the International Monetary Fund (IMF) and the Asian Development Bank (ADB).
Tensions in the Middle East Impact Market Sentiment
The local market pulled back as investors booked gains after six days of rallying. Reignited tensions between the US and Iran also weighed on the market.
Japhet Louis O. Tantiangco, Philstocks Financial, Inc. Research Manager
The US military's recent strikes in the Middle East have raised concerns about further geopolitical instability, especially following President Donald J. Trump's comments on the ceasefire with Iran.
The IMF has revised its 2026 GDP growth forecast for the Philippines down to 3.9% from 4.1%, while the ADB lowered its estimate to 3.8% from 4.4%. Both projections remain within the government’s target of 3.5%-4.5%.
On Thursday, only a few stocks managed to gain, with International Container Terminal Services, Inc. rising by 2.26% to P971.50. In contrast, Ayala Corp. led the decline, dropping by 3.51% to P468.
Total market turnover increased to P6.19 billion with 1.49 billion shares traded, indicating heightened activity amid the market's volatility.
As geopolitical tensions escalate, investors will be closely monitoring how these developments affect not only the stock market but also broader economic prospects.