The PSEi on Monday closed at 5,899.18, down 1.98 percent, as the local market plunged amid escalating tensions between the United States and Iran, which weighed heavily on investor sentiment.

The decline followed renewed threats between the two countries, particularly surrounding the US’ push for the full reopening of the Strait of Hormuz, a critical global oil route.

Trading relatively strong

Despite the sell-off, trading activity was relatively strong, with net value turnover reaching P7.22 billion. Foreign investors remained net sellers, posting P1.34 billion in outflows.

All sectors ended in negative territory, with Mining & Oil leading the losses (-8.71 percent) amid heightened sensitivity to oil price volatility. Market breadth was overwhelmingly negative, with 167 decliners against just 46 advancers. Only two index constituents posted gains: Manila Electric Company (MER) (+1.16 percent) and Aboitiz Equity Ventures (AEV) (+0.68 percent). Meanwhile, Converge ICT Solutions (CNVRG) was the worst performer, dropping 8.61 percent to P12.10.

Record low

On the currency front, the peso weakened to yet another record low of P60.30 from Thursday's P60.10 close — the fourth such instance in three weeks.

The move reflects a combination of broad US dollar strength and intensified safe-haven demand following the sharp escalation in US-Iran tensions over the past 24 hours.

Markets have reacted to rising risks of disruption in the Strait of Hormuz, which has pushed oil prices higher and pressured oil-importing economies like the Philippines.

U.S. dollar strengthened in global forex markets

In global forex markets, the US dollar index (DXY) strengthened alongside a rebound in US Treasury yields, reinforcing the dollar’s appeal.

At the same time, regional currencies weakened as investors rotated into safer assets. The peso’s slide is further exacerbated by persistent foreign outflows from Philippine equities and concerns that higher oil prices could widen the country’s trade deficit and fuel inflation, limiting policy flexibility.

Overall, the peso’s move to P60.30 reflects both immediate geopolitical shocks and broader structural pressures in the FX market.