Renewed geopolitical fears halt PSEi’s climb

MANILA, Philippines — The local stock market’s snapped its three-day climb and tumbled below the 6,000 level, as renewed geopolitical fears dampened investor sentiment.

The bellwether Philippine Stock Exchange index (PSEi) slipped by 0.77 percent or 46.14 points to end yesterday’s session at 5,963.24.

The broader All Shares index likewise shed 0.53 percent or 17.94 points, finishing at 3,353.94.

“Index fell back below 6,000, giving up part of its three-session rally as investors turned cautious amid higher rate risks and renewed geopolitical uncertainty after fresh Iran strikes weakened optimism over a US-Iran Hormuz deal,” AB Capital Securities said.

AB Capital said activity was muted ahead of the Eid’l Adha holiday today, while net foreign selling widened to its heaviest outflow since April 28.

Total turnover value thinned further to P5.05 billion from the previous day’s P5.58 billion.

Sectoral gauges were a mixed bag, with mining and oil posting the highest jump at 1.42 percent, while services suffered the biggest drop at 2.72 percent.

Decliners battered advancers, 117 to 77, while 53 issues were unchanged.

ICTSI was the most actively traded stock, plunging by 3.27 percent to P799 per share, followed by Meralco and Jollibee which fell by 0.74 percent and 1.09 percent, respectively, to P600 and P136.50.

Asian stocks fell yesterday after fresh US strikes on Iran deflated optimism that a deal to reopen the Strait of Hormuz was imminent.

The United States and Iran have been trying to reach a deal to end the Middle East war and reopen the crucial waterway since a fragile ceasefire on April 8.