Philippine Stocks Decline Amid Geopolitical Tensions and Weakening Peso

MANILA, Phiippines — Local stocks fell Wednesday as renewed US-Iran tensions drove up global yields and oil prices, while the peso’s drop to a record low weighed on sentiment. The benchmark Philippine Stock Exchange Index (PSEi) declined by 0.67 percent, or 40.66 points, to close at 6,053.23. READ: Trump vows to hit Iran ‘hard’ after first exchange of fire in weeks Brokerage Philstocks Financial Inc. said investors took cues from rising global yields and oil prices amid renewed hostilities between the US and Iran. The peso’s continued weakness also weighed on the market as the local currency sank to another record low. Luis Limlingan, head of sales at Regina Capital Development Corp., said the local index closed lower as the market underwent a correction following yesterday’s strong buying activity. “Weakness was further driven by the continued depreciation of the peso, which weighed on investor sentiment,” Limlingan said. “Meanwhile, softer global markets added to the cautious tone, prompting investors to take a more defensive stance,” he added. Trading remained tepid, with net value turnover reaching P5.14 billion. Foreign investors stayed on the sidelines, posting net outflows of P559.82 million. Most sectoral indices ended in negative territory. Industrials bucked the downturn, rising by 0.38 percent. Services posted the steepest decline, falling by 1.46 percent. Among index members, Manila Electric Co. led gainers after climbing 3.92 percent to P456. DigiPlus Interactive Corp., meanwhile, was the session’s biggest index laggard. Its shares plunged 7.05 percent to P10.02. The latest pullback came as investors grappled with renewed geopolitical risks, which have pushed up oil prices and global yields. These pressures, analysts said, coupled with the peso’s record-setting decline, kept risk appetite in check despite gains in select industrial stocks. INQ