A wave of anxiety swept through the Philippine stock market on Monday, abruptly ending a two-month period of gains. Investors reacted sharply to the rapidly escalating conflict in the Middle East and the subsequent surge in global oil prices, triggering a significant sell-off.
The Philippine Stock Exchange index (PSEi) experienced a dramatic fall, plummeting 4.97% – a loss of 314.19 points – to close at 6,006.22. This marked the lowest closing value since December 19, 2025, signaling a deep-seated concern among market participants.
Escalating tensions in the Middle East were the primary catalyst, eroding investor confidence and risk appetite across international markets. The fear of wider regional instability fueled the downturn, prompting a flight to safer assets.
Adding to the pressure, oil prices soared past the $100 per barrel mark, a level not seen in over a year. This spike ignited fears of rising inflation and the potential for central banks to tighten monetary policy, further dampening market sentiment.
The Philippine peso also weakened considerably, reaching a new low of P59.50 against the US dollar. This depreciation, extending a previous decline, amplified concerns about imported inflation and its impact on the domestic economy.
The surge in oil prices was driven by a combination of factors: production cuts by major oil-producing nations and growing anxieties over potential disruptions to vital shipping lanes, particularly the Strait of Hormuz – a critical artery for roughly 20% of the world’s oil supply.
Recent strikes by the US and Israel on Iranian targets, followed by retaliatory actions from Tehran targeting energy infrastructure, have dramatically heightened these geopolitical risks and fueled the oil price surge.
Across the board, all sectoral indexes suffered losses. Holding firms experienced the steepest decline, falling 5.93%, while property, mining and oil, financials, services, and industrials all registered significant drops.
Century Pacific Food, Inc. led the decliners, experiencing a substantial 11.11% plunge in its stock price. The breadth of the selling was overwhelming, with 205 stocks declining compared to only 28 that advanced.
Trading activity increased significantly, with value turnover reaching P11.08 billion on 2.54 billion shares traded. This represented a substantial increase from the previous session’s P7.66 billion and 1.66 billion shares.
Foreign investors contributed to the downward pressure, with net foreign selling surging to P1.58 billion – a considerable increase from the P229.7 million recorded in the previous session. This outflow of capital underscored the prevailing risk aversion.
