The Philippine Stock Exchange index (PSEi) ended Friday at 6,058.94, falling 0.89 percent, as investors remained cautious amid escalating tensions in the Middle East.

Market sentiment was weighed down after Iran’s newly appointed Supreme Leader Mojtaba Khamenei warned that the Strait of Hormuz could remain closed, raising concerns about potential disruptions to global oil supply and a spike in crude prices.

Subdued trading

Trading activity was relatively subdued, with net value turnover reaching P4.86 billion, while foreign investors remained net sellers with outflows totaling P3.66 billion.

Sector performance was largely negative. Only the industrial sector managed to post gains, edging up 0.16 percent, while the rest of the sectors declined, with mining stocks posting the largest losses.

Market breadth also reflected the cautious sentiment, with decliners outnumbering advancers, 108 to 68. Among individual index constituents, Emperador Inc. (PSE: EMI) led the gains, rising 5.13 percent to P15.58, while Jollibee Foods Corp. (PSE: JFC) was the biggest laggard, sliding 4.52 percent to P190.00.

Peso weakens further

Meanwhile, the Philippine peso weakened further to a new record low of P59.73 per US dollar, depreciating from Thursday’s close of about P59.38 and Monday’s previous record low of P59.50.

The currency’s slide reflects a broader strengthening of the US dollar in global forex markets, as investors gravitate toward safe-haven assets amid rising geopolitical risks.

Over the past week, tensions in the Middle East — particularly Iran’s warnings about potential closure of the Strait of Hormuz — have driven oil price volatility, reinforcing demand for the dollar.

Local currency under pressure

In the last 24 hours, the peso also came under pressure from firm US Treasury yields and expectations that the US Federal Reserve will maintain restrictive interest rates for longer, keeping the dollar supported.