The local bourse plunged as trading resumed on Monday amid renewed fears of rising oil prices driven by Middle East tensions, with the Philippine Stock Exchange index (PSEi) recording its largest single-day decline of 2026. The benchmark index dropped 4.97 percent, or 314.19 points, to close at 6,006.22.

Investors reacted to the first round of fuel price hikes and a weakening peso, which has slid from around P57 per US dollar in February to about P59.50, approaching the feared P60-per-dollar level. Concerns over a potential spike in monthly headline inflation further weighed on sentiment, prompting a massive sell-off as investors sought to lock in profits amid expectations of a weaker economic outlook.

Trading activity surged, with net value turnover reaching P9.76 billion. Foreign investors were net sellers, offloading P1.58 billion in equities, reflecting heightened risk aversion toward emerging markets. Regional peers also fell sharply, with stock markets in South Korea and Japan declining.

All sectors closed in negative territory, led by Holding Firms, which tumbled 5.94 percent. Market breadth was heavily skewed toward decliners, 205 to 28, with all blue-chip stocks ending lower. Century Pacific Food Inc. was the worst performer, plunging 11.11 percent to P32.00.

The peso weakened to a new record low of P59.50 per US dollar from around P59.00, moving closer to the P60 mark as the greenback strengthened globally. The US Dollar Index remained above 104–105, while US 10-year Treasury yields hovered between 4.2 and 4.3 percent.

Geopolitical tensions between the United States and Iran, along with instability in Israel, pushed Brent crude to just above $105 per barrel. WTI traded near $100–$103, while Dubai crude hovered around $99. Rising oil prices have increased dollar demand for imports, and foreign outflows from Philippine equities have added pressure on the peso.

President Ferdinand R. Marcos Jr. previously expressed concern over the peso breaching the P60 level. The central bank has maintained that it will intervene only in cases of extreme currency fluctuations.