The local bourse and foreign exchange market posted losses on Wednesday as risk sentiment weakened amid renewed uncertainty surrounding the US-Iran situation. 

The benchmark Philippine Stock Exchange Index (PSEi) declined on Wednesday, closing at 5,989.56 (-0.48%). Despite an announced ceasefire extension, the absence of a formal agreement and the continued disruption in the Strait of Hormuz kept investors cautious, particularly given its implications for global oil supply and inflation. The Bangko Sentral ng Pilipinas (BSP) 

Trading remained subdued, with net value turnover at ₱5.26 billion, below the year-to-date average, while foreign investors stayed risk-off, posting net outflows of ₱497.60 million.

Sector performance was broadly negative, with only services managing a modest gain (+0.56%), suggesting selective positioning rather than broad risk appetite. Conglomerates led the decline (-1.04%), reflecting pressure on index heavyweights and cyclical names. Market breadth was clearly negative, with decliners outpacing advancers 105 to 83, reinforcing the market’s defensive tone. Semirara Mining and Power led gains (+1.18%), supported by elevated energy prices, while Universal Robina Corp. fell the most (-2.02%) as consumer names faced margin concerns tied to rising input costs.

On the currency side, the peso weakened to ₱60.13 per US dollar, depreciating from ₱59.94 previously, as the dollar regained strength globally. Recent developments show the greenback holding near short-term highs as markets grow skeptical over the durability of the US-Iran ceasefire and factor in continued geopolitical risk. 

At the same time, stronger-than-expected US retail sales and a more hawkish tone from US monetary policymakers have reduced expectations of near-term rate cuts, further supporting the dollar.

Over the past 24 hours, volatility in oil markets has been a key driver. Prices have remained elevated near $90–$100 per barrel due to ongoing disruptions and uncertainty in the Strait of Hormuz, reinforcing inflation concerns and pressuring oil-importing economies like the Philippines. This dynamic typically weakens the peso by widening the country’s trade deficit and increasing dollar demand for energy imports.