The Philippine Stock Exchange Index (PSEi) fell 9.70 points, or 0.15 percent, to 6,256.02 on Tuesday, while the peso weakened by 11.1 centavos to P61.71 per US dollar from P61.599 previously as investors remained cautious amid renewed geopolitical risks and surging oil prices.

The market traded sideways for most of the session before ending slightly lower, reflecting the lack of strong catalysts and persistent concerns over developments in the Middle East.

Investor sentiment was weighed down by reports that a new US blockade of the Strait of Hormuz would apply to all vessels regardless of flag, intensifying fears of disruptions to oil shipments through one of the world’s most critical energy corridors.

Subdued trading

Trading activity remained subdued, with net value turnover reaching only P4.05 billion. Despite the decline, foreign investors remained net buyers, posting net inflows of P229.80 million.

Sector performance was mixed. Mining and Oil led gains, rising 1.30 percent on elevated crude prices, while Holding Firms posted the steepest decline, falling 0.84 percent. Among index constituents, Emperador Inc. climbed 1.55 percent to P15.70, while JG Summit Holdings Inc. fell 3.19 percent to P24.30.

According to Bankers Association of the Philippines data, the peso traded between P61.66 and P61.73 during the session. The currency opened at P61.68, while the weighted average rate rose to P61.692 from P61.596 previously.

The local currency now sits 4 centavos away from the P61.75 record low close posted last May.

Peso under pressure

The peso remained under pressure from stronger demand for safe-haven dollar assets, sharply elevated oil prices and concerns over potential disruptions to global energy supplies stemming from tensions in the Middle East.

Higher US interest rates also continued to support the dollar, offsetting the positive impact of foreign inflows into Philippine equities.

Oil prices surge

Oil prices surged to one-month highs after reports that a US naval blockade set to take effect Tuesday would cover Iran’s entire coastline, ports and oil terminals, raising fresh concerns over global energy supplies.

Brent crude climbed $7.29, or 9.6 percent, to settle at $83.30 per barrel, while U.S. West Texas Intermediate gained $6.73, or 9.4 percent, to $78.14 per barrel. The increases marked the largest single-day gains for both benchmarks in several months.