Stocks tumble as US targets Iran with new sanctions

MANILA, Philippines — Increasing uncertainty over the situation in the Middle East and investors maintaining their defensive stance ahead of this week’s Bangko Sentral ng Pilipinas (BSP) policy meeting dragged the local stock market to a negative finish yesterday.

The benchmark Philippine Stock Exchange index (PSEi) tumbled by 0.98 percent or 61.15 points to close the session at 6,190.23.

The broader All Shares index likewise fell by 0.65 percent or 22.45 points, finishing at 3,412.44.

Philstocks Financial said the local market fell as investors sold-off amid the lack of a positive catalyst.

It said concerns over the US-Iran situation, which is now turning into an economic warfare with Iran’s trading partners possibly getting hit by the US’ latest campaign, also weighed on sentiment.

“The PSEi corrected lower after US Treasury Secretary Scott Bessent threatened economic punishment against countries doing business with Iran, as the US seeks to isolate Iran,” RCBC chief economist Michael Ricafort said.

Ricafort said the PSEi also declined as markets anticipate the widely expected 25-basis-point rate hike by the central bank’s Monetary Board tomorrow.

Local sectors were covered in red, with services posting the biggest loss at 1.65 percent, followed by holding firms, which declined by 1.05 percent.

Trading remained anemic with total turnover value at P5.27 billion, slightly higher than the previous day’s P4.97 billion.

Foreigners were net sellers with net outflows at P542.12 million.

Market breadth was negative as decliners pummeled advancers, 108 to 77, while 66 issues did not change hands.

ICTSI was the most actively traded stock, plunging by 2.16 percent to P949 per share, followed by BDO Unibank, which dropped by 1.62 percent to P121.20, and Ayala Land, which climbed by 3.95 percent to P15.80.