Rising US-Iran tensions stifle share prices anew

MANILA, Philippines — The stock market plunged anew yesterday as US-Iran tensions escalated.

The benchmark Philippine Stock Exchange index (PSEi) shed 104.46 points, or 1.33 percent, to finish at 7,736.24.

The broader All Shares gauge likewise shed 52.77 points or 1.13 percent to close at 4,595.58. The sectoral indexes were also mostly down except for the mining and oil which rose 1.01 percent.

Total value turnover reached P5.171 billion. Market breadth was negative with 126 losers against 60 gainers, while 52 issues were left unchanged.

Traders said the escalating global political crisis between the US and Iran is adding to the jitters.

On the local front, Philstocks Financials said regulatory issues are also weighing on sentiment as investors fear that regulatory challenges now faced by the water concessionaires could also affect other listed firms.

Foreign selling also prevailed yesterday at P2.9 billion while foreign buying stood at P2.5 billion for a net foreign selling of P429 million.

“Escalation of the Middle East tension sent the local bourse, together with its regional peers, to negative territory,” Philstocks Financials said.

After last week’s US airstrike in Baghdad, Iran retaliated and fired more than a dozen rockets at two Iraqi military bases hosting US troops, the Pentagon confirmed.  

The rockets fired at the Ain al-Asad base in Anbar province and a base in Erbil came amid escalating tensions between Washington and Tehran, according to Al Jazeera.