The Philippine Stock Exchange index (PSEi) fell 0.25 percent or 14.87 points on Tuesday, closing at 5,971.98. This decline came as investors took profits from previous gains amid renewed geopolitical uncertainties.
Investor sentiment soured after the United States declined Iran’s latest counterproposal for peace talks. US President Donald Trump warned that the ceasefire between the two nations is weakening, contributing to market unease.
These geopolitical tensions pushed global oil prices higher and caused the peso to slip below the 61-per-dollar mark, impacting local equity performance.
Trading activity remained low, with net value turnover at P6.32 billion, slightly below the average for the year. Foreign investors were net sellers, with outflows reaching P107.55 million.
Luis Limlingan, head of sales at Regina Capital Development Corp., noted that profit-taking after Monday’s gains was a key factor in the market's decline.
He also indicated that weaker foreign direct investment inflows and the peso's depreciation contributed to the cautious mood among investors.
Philstocks Financial Inc. research manager Japhet Tantiangco echoed these sentiments, stating that diminishing hopes for a US-Iran peace agreement heightened geopolitical risks.
Sector Performance Mixed
Sector performance varied, with mining and oil stocks rising 2.09 percent, while the industrial sector experienced the largest decline at 1.56 percent.
Among individual stocks, Aboitiz Equity Ventures, Inc. gained 3.63 percent, reaching P29.95, while Jollibee Foods Corp. dropped 10.67 percent to P144.00, marking it as the day's worst performer.
Peso Weakens Further
The peso continued to weaken, closing at P61.48 against the dollar, down 33 centavos from Monday’s P61.15. It opened at P61.25, fluctuating between P61.25 and P61.495 throughout the day.
Trading volume for the peso reached P1.512 billion, slightly higher than the previous session's P1.511 billion.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., attributed the peso's decline to Trump's rejection of Iran's peace proposal.