The Philippine Stock Exchange Index (PSEi) suffered another broad-based selloff to begin the week, falling 100.33 points, or 1.64 percent, to 6,035.02, while the peso weakened past the P61-per-dollar level, closing at P61.12 from P60.77 at the end of last week amid renewed tensions in the Gulf.

Investor sentiment was weighed down by rising geopolitical uncertainty in the Middle East and concerns over the domestic growth outlook. 

Reports of strains in the fragile US-Iran understanding rekindled fears of potential disruptions to shipping through the Strait of Hormuz, a critical route for global oil supplies.

Pace of recovery questioned

At home, concerns over weaker government infrastructure spending also raised questions about the pace of economic recovery and future earnings growth for construction, property, and industrial-related companies.

Trading activity remained heavy, with value turnover reaching P10.26 billion, while market breadth was decisively negative at 116 decliners against 74 advancers, signaling broad risk aversion rather than isolated profit-taking. The broader All Shares Index likewise fell 1.17 percent to 3,341.08.

The selloff was widespread across sectors. Services led the decline, plunging 3.91 percent, largely due to heavy losses in International Container Terminal Services Inc., which dropped 5.69 percent to P861.50 and emerged as the session’s biggest drag on the index.

The lone advancing sector was Holding Firms, which rose 0.58 percent on strength in select conglomerates. 

Meanwhile, PLDT Inc. (TEL) bucked the broader downturn, climbing 4.46 percent to P1,148.00 as investors rotated into defensive, dividend-paying stocks.