The Philippine Stock Exchange Index (PSEi) extended its decline on Tuesday while the peso held steady at the record low of P61.75 posted a day earlier, as investors continued to react to rising oil prices, peso weakness, and escalating geopolitical risks in the Middle East.

The PSEi fell for a fourth straight session on Tuesday, slipping 0.75 percent to 5,896.80.

Despite US President Donald Trump signaling a possible pause in further strikes against Iran, Brent crude surged above $110 per barrel, renewing investor apprehension over prolonged disruptions to global oil supply. 

The peso’s sustained weakness against the dollar – currently trading at P61.75, the 11th such record low since the conflict’s escalation in March – also weighed heavily on investor sentiment, with the currency posting record lows during all four sessions of the market’s current slide.

Market turnover remained subdued at P4.71 billion, below the year-to-date average, while foreign investors stayed net sellers with P680.04 million in net outflows. All sectors closed lower, led by property stocks, which declined 1.33 percent amid concerns over higher inflation and potential interest-rate hikes should elevated energy prices persist.

Puregold (PGOLD) emerged as the day’s top index gainer, rising 3.32 percent to P48.20 as investors sought defensive consumer names, while Ayala Land (ALI) fell 3.15 percent to P14.74 amid broader risk-off sentiment and concerns over rising financing costs.

The peso closed unchanged at a record-low P61.75 per US dollar, matching Monday’s historic finish. Intraday trading ranged from P61.55 to P61.75, with the Bankers Association of the Philippines weighted average settling at P61.698.

The local currency remained under pressure as global investors stayed defensive despite Trump saying there was a “very good chance” of reaching a deal with Iran.

Markets remained skeptical, however, as tensions surrounding the Strait of Hormuz persisted following recent drone attacks in the United Arab Emirates and continued threats to global oil supply routes.

Oil prices stayed elevated even after briefly easing. Brent crude hovered near $110 per barrel while West Texas Intermediate (WTI) traded above $106 as traders weighed possible diplomatic developments against ongoing supply disruption risks in the Gulf.

The peso also remained pressured by broad US dollar strength. Investors continued shifting toward dollar-denominated assets and US Treasuries as safe havens amid heightened geopolitical uncertainty. Expectations that the US Federal Reserve could keep interest rates elevated for longer than expected likewise supported the dollar.