Stocks tumble as Middle East tensions rise

MANILA, Philippines — The local stock market capped off the shortened trading week in the negative territory amid prevailing geopolitical issues.

The benchmark Philippine Stock Exchange index declined by 0.53 percent or 31.3 points to settle at 5,910.06.

The broader All Shares index likewise dropped by 0.44 percent or 14.56 points, ending at 3,289.95.

Luis Limlingan of Regina Capital said the local bourse closed in the red as continued attacks on Iran stoked fear and dampened investor sentiment, dragging the index lower.

“Surging oil prices on heightened geopolitical tensions raised concerns about inflation and economic headwinds. This in turn sparked worries that the central bank may be pressured into raising rates to tame inflationary risks,” Limlingan said.

A series of fresh US military strikes on sites in Iran, on top of those carried out Tuesday for the downing of a helicopter, added to the sense of unease among investors.

AB Capital Securities said trading activity softened ahead of today’s holiday.

“Despite weaker participation, foreigners remained net buyers, with inflows slightly more broad-based rather than purely ICT-driven,” it said.

Total turnover value thinned to P6.65 billion from the previous day’s P7.22 billion.

Most sectors were in the red, with financials losing the most at 1.39 percent. Services posted the biggest jump at 0.44 percent.

Decliners outnumbered advancers, 99 to 75, while 59 issues were unchanged,

ICTSI was the top traded stock, climbing by 0.67 percent to P898 per share, followed by BDO and Ayala Land which fell by 3.57 percent and 3.48 percent, respectively, to P116.30 and P12.74.