Oil fears trigger stock retreat, peso fall

The Philippine Stock Exchange Index (PSEi) fell 20.98 points, or 0.33 percent, to 6,265.72 on Monday, while the peso weakened by 8.4 centavos to P61.599 per US dollar from Friday’s P61.515 close as investors turned cautious amid renewed geopolitical and energy market concerns.

The market opened on a positive note as bargain hunters extended the previous session’s buying momentum, but gains faded throughout the day as investors reassessed risks stemming from developments in the Middle East.

Subdued trading activity

Trading activity remained subdued, with net value turnover reaching only P4.62 billion, reflecting a wait-and-see stance among market participants.

Foreign investors were net sellers during the session, posting net outflows of P673.06 million and ending a six-session streak of net foreign buying. Sector performance was largely negative, with Mining and Oil declining 2.27 percent, the steepest drop among the major indices, while Services was the lone gainer, rising 0.40 percent.

Among index constituents, Converge ICT Solutions Inc. led advancers with a 2.17 percent gain to P9.40, while DigiPlus Interactive Corp. was the biggest laggard, falling 3.52 percent to P10.96.

According to Bankers Association of the Philippines (BAP) data, the peso traded within a P61.56 to P61.65 range during the session.

Weaker peso

The local currency opened weaker at P61.61, touched an intraday low of P61.65 and settled near the weaker end of its trading range. The BAP weighted average rate stood at P61.596, while the FX settlement rate was P61.597.

The peso’s decline was largely driven by renewed demand for safe-haven assets as global markets reassessed geopolitical risks over the weekend.