The PSEi fell 37.10 points, or 0.64 percent, to 5,788.87 on Monday, while the peso weakened 8 centavos, or 0.13 percent, to P62.545 per US dollar from Friday’s P62.465 close, as renewed US-Iran tensions, higher oil prices and elevated bond yields weighed on Philippine assets.

The market retreated as investors reassessed geopolitical and inflation risks after US President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz.

Concerns over key energy route disruptions

Trump said negotiations could resume this week, but the rejection raised concerns that disruptions to the key energy route could persist.

Brent crude rose 1.6 percent to $106 a barrel early Monday, bringing its September gain to about 17 percent, while US crude rose 1.1 percent to $93.47.

Higher oil prices are particularly significant for the Philippines, a major net energy importer. For the 22 to 28 September pricing period, local pump prices rose by P8.82 per liter for diesel, P4.88 for gasoline and P6.47 for kerosene.

Broad-based market decline

The PSEi’s decline was broad-based. Mining and Oil plunged 3.25 percent, Industrials fell 1.61 percent, Financials lost 0.92 percent and Holding Firms declined 0.98 percent.

Services slipped 0.14 percent, while Property was the lone advancing sector, gaining 0.05 percent. Turnover reached P4.90 billion, while foreign investors remained net buyers with P75.47 million in net inflows.