Market, peso, slump amid renewed tensions

The Philippine Stock Exchange index (PSEi) ended Friday at 5,960.97, down 1.21 percent, as investors locked in profits following Thursday’s sharp rally above the 6,000 level.

 Market sentiment turned cautious after fresh reports of military exchanges between the United States and Iran near the Strait of Hormuz reignited geopolitical concerns and weighed on broader regional risk appetite.

Trading activity softened, with net value turnover reaching P5.70 billion, below the year-to-date average of around P6.37 billion, reflecting a more defensive stance among investors. Foreign funds returned to selling mode, recording net outflows of approximately P663.89 million, reversing the previous sessions’ foreign buying streak.

Sector performance negative

 Sector performance was broadly negative. Mining & Oil was the lone gainer, advancing 1.60 percent as elevated global crude prices continued to support resource-related counters. Meanwhile, the Services sector declined 1.53 percent, leading losses amid weakness in telco and consumer-related names.

 Among index constituents, Converge ICT Solutions led gainers, climbing 2.30 percent to P12.48, while JG Summit Holdings (JGS) posted the steepest decline, falling 3.96 percent to P26.70. The broader market breadth also weakened significantly, with only seven index gainers for the session.

 The pullback in Philippine equities mirrored cautious trading across global markets as investors monitored renewed tensions surrounding the Strait of Hormuz, a critical shipping lane that handles roughly one-fifth of global oil supply. Oil prices remained volatile after reports earlier this week of attacks involving Iranian and US-linked vessels in the region, keeping inflation concerns elevated globally. 

Peso dipped slightly

 In the currency market, the peso weakened slightly, with the local unit closing at P60.61 per US dollar, compared with Thursday’s P60.42 finish. The depreciation reflected renewed safe-haven demand for the US dollar after geopolitical risks resurfaced overnight, alongside firmer US Treasury yields and reduced expectations of aggressive Federal Reserve rate cuts in the near term.