Philippine shares ended lower on Thursday as renewed concerns over the Middle East conflict and its impact on global oil prices dampened investor sentiment.

The PSEi closed at 6,113.58, down 44.75 points or 0.73 percent, with the local market pulling back after Iran warned that crude prices could potentially surge to as high as $200 per barrel if tensions with the United States escalate.

The prospect of higher energy prices — particularly significant for oil-importing economies like the Philippines — added to market caution.

Active trading

Trading remained active, with net value turnover reaching P7.14 billion, above the year-to-date average of P6.63 billion, while foreign investors were net sellers with outflows of P453.03 million.

Sector performance was largely negative. Conglomerates were the only sector to close higher, gaining 1.33 percent, while Services recorded the steepest decline, dropping 3.28 percent.

Market breadth was weak as decliners outnumbered advancers, 125 to 60. Among index constituents, DigiPlus Interactive Corp. led the gains, climbing 3.96 percent to P19.96, while International Container Terminal Services Inc. was the day’s worst performer, falling 4.79 percent to P695.00.

Meanwhile, the Philippine peso weakened to around P59.38 per US dollar, slipping from Wednesday’s close of about P59.17 and weaker than last week’s close near P59.00, though still slightly stronger than levels seen earlier in the month. Compared with the end-February close near P56.20–P56.30, the peso remains significantly weaker amid persistent dollar strength.

Driven by geopolitical shifts

Currency markets over the past week have been driven largely by geopolitical developments and shifts in global energy prices.

Escalating tensions involving Iran, Israel and the United States, particularly concerns over potential disruptions to shipping in the Strait of Hormuz, pushed oil prices higher and strengthened the US dollar as a safe-haven asset.