The Philippine Stock Exchange index drops to below 6,000-level on Monday (March 23, 2025) as the conflict in the Middle East lingers. The Philippine peso, meanwhile, weakened further against the US dollar after closing at the 60-level at the end of last week’s trading. (PNA file photo)
Investors retreated to the sidelines on Monday as escalating tensions in the Middle East unnerved financial markets, pulling the Philippine Stock Exchange index (PSEi) below the 6,000 level and dragging the peso to a fresh record low against the US dollar.
The benchmark PSEi tumbled 1.98 percent, or nearly 119 points, to close at 5,899.18, while the broader All Shares index fell 2.04 percent to 3,276.59.
Selling pressure swept across the board, with all sectoral indices finishing in negative territory. Mining and Oil suffered the steepest decline, plunging 8.71 percent, followed by Holding Firms, which dropped 2.99 percent. Property slipped 2.98 percent, Financials fell 2.50 percent, Industrial lost 1.16 percent, and Services declined 0.95 percent.
Market activity remained brisk, with 1.4 billion shares changing hands for a total value of P8.1 billion. Losers overwhelmed gainers, 167 to 46, while 58 issues were unchanged.
Philstocks Financial said investors were rattled by fears of a deeper conflict in the Middle East, particularly over the possibility of further escalation between the United States and Iran.
“The local market plunged as the future escalation of tensions between the US and Iran weighed on investors’ sentiment. This comes as the two countries exchanged threats amidst the US’ demand for the complete reopening of the Strait of Hormuz,” the brokerage said in its market report.
The peso also came under renewed pressure, closing at 60.3 to the dollar, weaker than its previous record low of 60.1 posted last Thursday. There was no trading on Friday due to the Eid al-Fitr holiday.
The local currency opened at 60.15 and moved within a range of 60.14 to 60.37 during the session, with the average exchange rate settling at 60.26. Dollar trading volume reached $1.65 billion.