Stocks tumble as Trump rejects Iran proposal

MANILA, Philippines — The local stock market started the week on a sour note amid renewed concerns over possible prolonged oil supply disruptions.

The benchmark Philippine Stock Exchange index (PSEi) tumbled by 0.64 percent or 37.1 points to finish yesterday’s session at 5,788.87.

The broader All Shares index also slipped by 0.72 percent or 23.49 points, settling at 3,222.72.

Luis Limlingan of Regina Capital said the PSEi declined back to the 5,700 level as market sentiment turned negative after US President Donald Trump rejected Iran’s latest proposal to end the war and reopen the Strait of Hormuz.

“The development renewed concerns over the prolonged disruption of oil supplies and the potential for crude prices to remain elevated,” he said.

Limlingan said investors consequently remained cautious, keeping the local market under selling pressure.

“The PSEi was weak throughout the day, losing 5,800 but holding above 5,770, which now looks like a more stable near-term floor after two sessions closing above the level,” AB Capital Securities said.

“We view this as modestly more constructive, with 5,770 as the key level to watch: a sustained hold would strengthen the base, while a break below would weaken the setup. 5,800 remains the first hurdle,” it said.

All sectoral gauges were in the red, except for property, which inched up by 0.06 percent. Mining and oil index recorded the largest drop at 3.25 percent, followed by industrial, which lost 1.61 percent.

Total turnover value reached P5.19 billion to start the week.

Decliners battered advancers, 128 to 51, while 66 issues did not change hands.

ICTSI was the top traded stock, closing 0.27 percent higher to P922.50 per share. It was followed by PNB Holdings, which was unchanged at P1.20 and SM Investments, which declined by 0.29 percent to P508.50.