Local stocks slipped below 6,200 on Tuesday as investors remained cautious amid renewed concerns over the US-Iran situation.
The benchmark Philippine Stock Exchange Index (PSEi) fell 0.98 percent, or 61.15 points, to close at 6,190.23.
Philstocks Financial Inc. said investors sold shares amid a lack of positive catalysts, while growing tensions between the US and Iran continued to dampen sentiment.
Concerns have shifted to the economic fallout from the conflict, especially the potential impact on Iran’s trading partners due to the United States’ latest campaign.
Luis Limlingan, head of sales at Regina Capital Development Corp., said the local bourse ended lower amid broad-based selling pressure, as heightened uncertainty over the situation in the Middle East weighed on investor sentiment.
‘Moreover, investors are expected to remain defensive ahead of the Bangko Sentral ng Pilipinas’ policy meeting and await signals on its next move,’ Limlingan said.
Wait-and-see stance
Investors largely stayed on the sidelines, with net value turnover reaching only P4.01 billion.
Foreign investors also continued to pull funds out of the market, recording net outflows of P542.12 million.
All sectoral indices finished in negative territory due to broad-based selling pressure. Services suffered the steepest decline, shedding 1.65 percent.
Only five members of the PSEi managed to end the session higher.
Ayala Land Inc. bucked the downturn and emerged as the top index gainer, climbing 3.95 percent to P15.80.
RL Commercial REIT Inc., meanwhile, led the laggards after falling 4 percent to P7.20.
Analysts said the latest decline extended the market’s cautious trading as investors weighed geopolitical risks and waited for fresh catalysts that could provide direction.
Thin turnover also reflected subdued participation, with many investors opting to remain on the sidelines amid uncertainty over the external environment. /