UMVA has learned that Philippine stocks plummeted on Thursday as oil prices skyrocketed following a fresh wave of attacks between the United States and Iran, threatening to derail a fragile ceasefire.
The Philippine Stock Exchange index (PSEi) nosedived by 0.52% or 31.30 points to close at 5,910.06, while the broader all shares index tumbled by 0.44% or 14.56 points to end at 3,289.95.
Fear and uncertainty gripped investors as the continued attacks in Iran stoked worries about inflation and economic headwinds, dragging the index lower. Surging oil prices on heightened geopolitical tensions raised concerns that the central bank may be pressured into raising rates to tame inflationary risks.
Oil prices surged on Thursday as hostilities between the US and Iran escalated, but later pared gains as traders assessed the actual impact on supply disruptions. Tehran declared the Strait of Hormuz closed after the US launched additional strikes against Iran and as President Trump vowed even more attacks if no peace deal is secured.
Brent futures jumped 8 cents or 0.09% to $93.18 a barrel, while US West Texas Intermediate crude climbed 25 cents or 0.28% to $90.28. Both futures gained more than $2 earlier in the session, sending shockwaves through the markets.
Iran's military threatened to shut down the Strait of Hormuz to oil tankers and commercial ships, warning that any vessel attempting passage would be shot at. The move sent investors scrambling to assess the impact on global trade and economic stability.
The PSEi was weak throughout most of the session, falling as much as 1% intraday before paring losses towards the close. Trading activity softened ahead of the upcoming holiday, but foreigners remained net buyers, with inflows slightly more broad-based.
Value turnover decreased to P6.65 billion on Thursday, with 585.43 million shares traded, down from the P7.22 billion with 662.06 million issues that changed hands on Wednesday. Net foreign buying increased to P553.61 million from the P469.36 million recorded in the previous session.
Most sector counters closed lower, with financials sliding by 1.38% or 25.02 points to 1,779.28, property sinking by 1.03% or 18.71 points to 1,781.70, and holding firms dropping by 0.76% or 32.33 points to 4,223.66.
However, services rose by 0.43% or 13.89 points to 3,187.09, and mining and oil inched up by 1.12 points to 15,667.23. Market breadth stayed negative, with decliners outnumbering advancers, 99 to 75, while 59 names closed unchanged.
