The Philippine Stock Exchange Index (PSEi) experienced a downturn on May 12, 2026, closing down 0.25 percent, or 14.87 points, at 5,971.98. This decline was driven by growing concerns over escalating geopolitical tensions and rising oil prices.
Investor sentiment soured as hopes for a peace agreement between the United States and Iran diminished. The US government rejected Iran's recent counterproposal, prompting fears of a potential escalation in conflict.
In addition to geopolitical concerns, global oil prices continued to climb, exacerbated by a weakening peso that fell below the 61-to-a-dollar mark. Luis Limlingan, head of sales at Regina Capital Development Corp., noted that the local market responded negatively as investors took profits following previous gains.
Limlingan also highlighted the impact of reduced foreign direct investment (FDI) inflows, which contributed to the cautious atmosphere in today’s trading session.
Overall trading activity remained subdued, with net value turnover reaching P6.33 billion, slightly lower than the year-to-date average of P6.35 billion. Foreign investors continued to withdraw from the market, resulting in net outflows of P107.55 million.
Sector performance varied, with mining and oil stocks gaining 2.09 percent, while industrials saw the steepest decline at 1.56 percent. Aboitiz Equity Ventures Inc. was the top gainer, rising 3.63 percent.
Conversely, Jollibee Foods Corp. faced significant losses, dropping 10.67 percent to P144 per share. Analysts indicate that investor sentiment remains fragile as markets closely monitor the developments in the US-Iran situation and their potential implications for inflation and global energy prices.