PSEi drops to the level of 6,500 for conflicts in the Middle East

THE MAIN INDEX closed Monday at its lowest level in almost three months due to profit-taking amid the geopolitical conflict in the Middle East.

The benchmark Philippine Stock Exchange index (PSEi) on Monday fell 1.45% or 96.96 points to close at 6,562.43, while the broader all-stock index fell 1.11% or 39.29 points to close at 3,478 ,11.

This was the PSEi’s worst finish in almost three months or since it closed at 6,503.54 on January 19.

“The local stock fell 96.96 points (1.45%) to 6,562.43 as concerns over tensions in the Middle East increased, forcing investors to secure some profits to avoid uncertainties,” Philstocks said Financial, Inc. research analyst Claire T. Alviar in a Viber message. message.

“Most Asian markets also fell as investors assessed the impact of Iran’s massive drone and missile attacks on Israel this weekend. Moreover, investors are waiting to see how Israel would respond to this,” she added.

Asian shares fell on Monday as risk sentiment took a hit after Iran’s retaliatory attack on Israel stoked fears of a wider regional conflict and kept traders on edge, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7% after Iran launched explosive drones and missiles at Israel late on Saturday in retaliation for a suspected Israeli attack on its consulate in Syria on April 1.

The threat of open war between the Middle East’s greatest enemies and the encroachment of the United States has kept the region on edge. US President Joseph R. Biden warned Prime Minister Benjamin Netanyahu that the US will not participate in a counter-offensive against Iran.

Israel said that “the campaign is not over yet.”

“Philippine stocks sold off as investors took precautions following geopolitical tensions between Iran and Israel. Over the weekend, Tehran-allied militants fired hundreds of rockets, most of which were neutralized,” said Luis A. Limlingan, chief sales officer of Regina Capital Development Corp. also in a Viber message.

Nearly all sector indexes closed lower on Monday, with mining and oil the only gainers, rising 0.32% or 27.08 points to 8,311.23.

Meanwhile, holdings fell 1.98% or 123.34 points to 6,077.81; financial services fell 1.67% or 34.25 points to 2,006.48; industrials fell 1.22% or 106.67 points to 8,602.87; real estate fell by 0.9% or 23.32 points to 2,542.77; and the services sector fell by 0.67% or 12.61 points to 1,844.62.

Value turnover fell to P5.58 billion on Monday, with 612.72 million issues changing hands from the P6.78 billion, while 523.94 million shares were traded on Friday.

There were more decliners than advancers, 136 to 63, while 44 problems ended unchanged.

Net foreign sales fell to P304.76 million on Monday from P567.78 million on Friday. — RMDO of Reuters