The Philippine Stock Exchange index (PSEi) closed Monday at 5,948.33, down 0.84 percent, as the market reopened from the Holy Week break to weaker sentiment amid escalating tensions in the Middle East.

Investor caution intensified following reports of US military strikes on Iranian infrastructure and renewed threats of further escalation if the Strait of Hormuz is not fully reopened.

Domestically, the disruption has kept pump prices firmly in the triple-digit range, while concerns over dwindling oil supply, rising inflationary pressures and a weaker peso weighed on sentiment.

Subdued trading

As a result, trading activity remained subdued, with net value turnover at P4.35 billion, below the year-to-date average of P6.49 billion. Foreign investors continued to exit the market, posting net outflows of P1.05 billion.

Sectoral performance was broadly negative, with only the Property sector posting marginal gains of 0.02 percent. Mining & Oil led the decline, down 2.99 percent, reflecting volatility in global energy markets. Market breadth was weak, with 125 decliners against 70 advancers.

Among index stocks, Manila Electric Company (MER) led gains, up 1.82 percent, while SM Investments Corp. (SM) was the worst performer, down 3.63 percent.

Peso strengthens

On the currency front, the peso strengthened to P60.05 per US dollar from P60.16 prior to the Holy Week break, signaling a modest recovery after hitting consecutive record lows, including a trough of P60.74 at end-March.

Monday’s rebound came despite still-elevated global risks and was largely driven by a temporary easing in oil price momentum and positioning adjustments in foreign exchange markets.

Over the past week, the peso had come under pressure as crude prices surged above $110 per barrel, amid fears of prolonged supply disruptions linked to the Strait of Hormuz — a key route for roughly 20 percent of global oil supply.

While oil prices remain elevated, they have stabilized somewhat as markets assess potential diplomatic efforts and partial supply adjustments, including plans by OPEC+ to modestly increase output.

However, geopolitical risks persist — highlighted by attacks on Gulf oil infrastructure and continued threats of escalation — keeping volatility elevated.