The local bourse nosedived as markets reopened on Monday amid renewed fears of spiking oil prices due to the Middle East conflict, with the benchmark Philippine Stock Exchange index (PSEi) posting its largest single-day decline of 2026 to date. The index fell 4.97 percent to 6,006.22, down 314.19 points.
Investors digested the first round of fuel price hikes, as well as a weakening local currency, which has slid from the P57 level in February to about P59.50 today — halfway to the feared P60-per-dollar level.
Massive sell-off
Further economic implications, such as a possible spike in monthly headline inflation, added to uncertainty, with Monday’s massive sell-off reflecting investors cashing out amid expectations of a weaker economic outlook.
Trading activity was elevated, with net value turnover reaching P9.76 billion as investors locked in profits. Foreign investors were net sellers, with outflows of P1.58 billion, reflecting a risk-off sentiment toward emerging markets. Regional peers likewise tumbled on Monday, with the stock markets of South Korea and Japan also falling sharply.
All sectors finished in the red
All sectors finished in the red, with Holding Firms posting the steepest decline at 5.94 percent. Market breadth was overwhelmingly negative, as decliners crushed advancers, 205 to 28. All blue chips ended in negative territory, with Century Pacific Food Inc. the worst performer, plunging 11.11 percent to P32.00.
The peso likewise weakened to around P59.50 per US dollar from about P59.00 previously, inching closer to the feared P60-per-dollar level as the greenback strengthened globally. The US Dollar Index remained above the 104–105 level, while US 10-year Treasury yields hovered between 4.2 percent and 4.3 percent.
Sustained tension between US and Iran
Sustained geopolitical tensions between the United States and Iran, alongside instability involving Israel, pushed Brent crude to just above $105 per barrel, while WTI traded near $100 to $103 and Dubai crude hovered around $99.
Rising oil prices have increased dollar demand for imports, while foreign outflows from Philippine equities have also added pressure on the local currency.
President Ferdinand R. Marcos Jr. previously expressed his desire for the local currency to not breach the P60 level. Meanwhile, the central bank has maintained its position wherein it only intervenes under moments of extreme fluctuations in the valuation of the peso.