PSEI plummets to 6,400 level due to ME conflict

The Philippine Stock Exchange index (PSEI) fell through the 6,500 support level to settle just above the 6,400 mark as investors cash out amid uncertainties due to the conflict in the Middle East (ME).

The main index plunged 157.46 points or 2.40 percent to close at 6,404.97 as the Services sector led the retreat across the board. Volume increased to 15.82 billion shares worth ₱7 billion aa losers swamped gainers 154 to 41 with 45 unchanged.

“Philippine shares experienced the largest sell-off year to date as the market touched the 6,400 level, falling 2.4 percent spurred by increased yields and heightened worries over escalating tensions in the Middle East, triggered by Iran’s airstrike on Israel last Saturday,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “The PSEI has now wiped out most of its gains, ending the session with a year-to-date performance of -0.7 percent.“

Philstocks Financial Research and Engagement Officer Mikhail Plopenio said “This Tuesday, the local market plunged as investor sentiment was weighed down by negative factors offshore and at home.”

“The continuous selloff was due to the increasing tensions in the Middle East and worries regarding possibly delayed rate cuts by the BSP amid upside risks to inflation. The negative cues from Wall Street amid rising treasury yields also contributed to the market’s drop,” he added.

With Tuesday’s decline, the bourse has now dropped for 9 consecutive days which has been the longest losing streak since October 2016.