Philippine shares tumbled on Monday, driven by renewed US-Iran hostilities and disappointing government infrastructure spending that raised doubts about the country's economic growth.
The benchmark Philippine Stock Exchange Index (PSEi) dropped 1.64 percent, losing 100.33 points to close at 6,035.02.
“Investors turned cautious after signs emerged that the interim agreement between the US and Iran was beginning to unravel,” said Japhet Tantiangco, research manager at Philstocks Financial Inc.
Concerns intensified after Iran reportedly shut down the Strait of Hormuz again, alleging that the US failed to halt attacks on Lebanon. In retaliation, US President Donald Trump threatened possible military action against Iran.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., noted that the PSEi fell as global crude oil prices edged higher, with Nymex crude trading near $77 per barrel.
The market was also pressured by April public infrastructure spending data, which showed a 52-percent year-on-year decline.
Luis Limlingan, head of sales at Regina Capital Development Corp., said the local bourse ended lower amid broad-based foreign selling across sectors. Meanwhile, the Philippine peso weakened against the US dollar, breaching the 61 level again.
Brisk trading despite sell-off
Trading activity remained robust. Net value turnover reached P8.42 billion, while foreign investors ended the session as net sellers with net outflows of P924.26 million.
Most sectoral indices finished in the red. The services sector posted the steepest decline, dropping 3.91 percent. Conglomerates were the lone bright spot, gaining 0.58 percent.
Among index members, telecommunications giant PLDT Inc. led gainers after climbing 4.46 percent to P1,148 per share. Meanwhile, International Container Terminal Services Inc. was the session’s biggest drag, tumbling 5.69 percent to P861.50.
Analysts said the broader market reflected the cautious mood as investors weighed the potential economic impact of escalating geopolitical risks and weaker-than-expected government spending, both of which could cloud the outlook for growth in the months ahead.