Philippine markets and peso decline amid US-Iran tensions

The Philippine stock market and currency faced significant pressure on Wednesday due to escalating geopolitical tensions between the United States and Iran. The benchmark Philippine Stock Exchange Index (PSEi) declined by 0.67 percent, closing at 6,053.23 points.

Investor sentiment was negatively impacted by rising global yields and oil prices driven by Middle East hostilities. Simultaneously, the Philippine peso hit a new record low, sliding past the 62.50 mark against the US dollar, with an intraday low of 62.58. The strengthening US dollar, acting as a safe-haven asset, and concerns over inflation further weakened the local currency.

In the equity market, the services sector saw the steepest decline of 1.46 percent, while industrials rose by 0.38 percent. Manila Electric Co. was a top gainer, climbing 3.92 percent, whereas DigiPlus Interactive Corp. was the largest laggard, falling 7.05 percent. Foreign investors recorded net outflows of P559.82 million.