Market extends decline as peso strengthens

The Philippine Stock Exchange Index (PSEi) closed at 6,013.10 on Tuesday, down 0.68%, extending its decline as investors remained wary of the continued US blockade of the Strait of Hormuz. 

Sentiment was dampened by fears of worsening and prolonged oil price hikes with Strait remaining closed off. Concerns on inflation also weighed heavily, as investors’ apprehension on broader, second round effects of the blanket oil price hikes intensified despite supposed progress on peace talks between the US and Iran.

As a result, investors stayed on the sidelines, with value turnover at P5.65 billion, well below the year-to-date average. Foreign investors likewise were net sellers, with outflows of P446.77 million.

Sectoral performance was mixed, with mining up 1.03% while services fell 1.45%. Market breadth slightly favored advancers, 110 to 93.

Monde Nissin Corp. (MONDE) led gainers (+6.73%), while DigiPlus (PLUS) declined the most (-5.39%).

The peso strengthened to P59.87 from P60.135, tracking a pullback in global oil prices and a softer US dollar. Earlier in the week, crude surged above $100/barrel after the US imposed a naval blockade on Iran-linked oil flows, tightening supply expectations and supporting the dollar.  

However, prices partially eased below $100 as markets digested reports of continued shipping activity and possible renewed negotiations, tempering safe-haven demand for the dollar.  

Regionally, Asian currencies have been under pressure due to higher oil import costs and inflation risks, with central banks increasingly alert to FX volatility.

Still, the broader backdrop remains fragile. The Strait of Hormuz—handling roughly 20% of global oil trade—continues to face disruptions, keeping domestic fuel prices elevated and currencies in oil-importing economies like the Philippines volatile.