The Philippine Stock Exchange index (PSEi) experienced a 1.27% decline on Tuesday, closing at 6,333.80 after a four-day rally. The drop was attributed to profit-taking by investors and concerns over inflation caused by the weakening peso.
Market Reactions and Economic Pressures
The local bourse ended lower as investors took profits after a four-day winning streak.
Luis A. Limlingan, Head of Sales, Regina Capital Development Corp.
- PSEi opened at 6,461.34, reaching a peak of 6,488.35 before selling pressure took over.
- The peso closed at P61.745 against the US dollar, marking a drop of 5.90 centavos.
Investor sentiment was further impacted by rising oil prices linked to escalating tensions in the Gulf region. The Philippines sources approximately 90% of its oil from this area, making it highly vulnerable to international market fluctuations.
Additionally, diesel and kerosene prices are expected to rise by over P10 per liter this week due to the renewed conflict, which is likely to exacerbate domestic inflation.
Despite the overall decline, certain sectors showed resilience. The mining and oil sector rose by 3.51%, and industrials increased by 1.26%.
In trading volume, value turnover reached P7.94 billion with 702.8 million shares exchanged, indicating active market participation despite the downturn.