The Philippine Stock Exchange index (PSEi) ended Monday at 6,006.55, falling 0.86 percent, marking its third straight day of decline as investors remained wary of the ongoing conflict in the Middle East and its potential economic impact.

Market sentiment was weighed down by concerns that with a protracted Mideast conflict, fuel and energy prices would go up even higher, while the continued weakness of the peso could further raise inflation risks.

Muted trading

Trading activity was relatively muted, with net value turnover reaching P5.88 billion, below the year-to-date average of P6.58 billion. Foreign investors were net sellers, with total net outflows of P400.15 million.

Sector performance was broadly negative. Only the services sector managed to post a gain, rising 0.17 percent, while the rest declined, led by the mining sector which dropped 4.58 percent.

Market breadth was weak with decliners outnumbering advancers 153 to 53. Only two index components finished in positive territory: International Container Terminal Services Inc. (ICT) which rose 1.46 percent, and DMCI Holdings (DMC) which gained 0.41 percent. Meanwhile, DigiPlus Interactive Corp. (PLUS) was the biggest laggard among index constituents, sliding 5.66 percent to P18.00.

New record low

The Philippine peso weakened further to a new record low near P59.87 per US dollar, depreciating from Friday’s close of around P59.74.

The currency’s slide reflects continued US dollar strength in global forex markets, as investors shifted toward safe-haven assets amid escalating geopolitical tensions in the Middle East, particularly fears that conflict involving Iran could threaten oil supply routes such as the Strait of Hormuz.

Over the past 24 hours, the dollar also gained support from firm US Treasury yields and expectations that the US Federal Reserve will keep interest rates higher for longer, encouraging capital flows into US assets and weighing on emerging-market currencies across Asia, including the Philippine peso.