Escalating tensions sent the benchmark Philippine Stock Exchange Index (PSEi) plunging as much as 6 percent to 5,937.41 on Monday before recovering slightly to close at 6,006.22, down 4.97 percent the previous session.
It mirrored investor sentiment across Asian markets, where Japan’s Nikkei slumped 5.2 percent, South Korea fell 5.96 percent, and the Asia Dow dropped 4.38 percent.
The PSE Index lost about P440 billion since Friday while the broader stock market shed P670 billion, based on Bloomberg data. This adds to losses of about P840 billion and P1.39 trillion since the war broke out last Feb. 28, according to Bloomberg data.
Analysts’ view
“The selloff was largely driven by the spike in oil prices amid the ongoing US–Iran conflict, as investors turned cautious on its implications for inflation and economic growth,” Shawn Atienza, research analyst with AP Securities, told InsiderPH.
April Lynn Tan, chief equity strategist at COL Financial Group, said Monday’s trading was the most volatile since April 2025, when markets were rattled by sweeping US tariffs announced by President Donald Trump.
Technical view
“It’s trying to price in the swing in oil and the recent recovery of the US dollar. We hope after the crazy oil swing today (high of $119/barrel) that it can settle at or below $100. That should help stave off inflationary worries,” Juanis Barredo, COL Financial Group chief technical analyst, told InsiderPH.
Barredo said the 6,000 level remains a key support for the PSEi, although a sustained breakdown could push the index toward 5,820 and potentially 5,600.
A closer look
All sectoral indices ended in the red, led by holding firms, which dropped 5.94 percent, followed by property down 5.12 percent, while financials, mining and oil, services, and industrial also posted losses.
The day’s most active stocks were led by International Container Terminal Services, Inc., which fell 4.25 percent to P687.50, followed by BDO Unibank, Inc., down 3.84 percent to P120.20, and Metropolitan Bank & Trust Company, which dropped 5.31 percent to P67.70.
Also among the most actively traded were Bank of the Philippine Islands, which slid 6.79 percent to P101.60, and SM Investments Corporation, which declined 6.18 percent to P638.
Big picture
In her Philippine Daily Inquirer column published on Monday, Tan argued that the market selloff following the US–Israel strikes on Iran reflects a typical short-term reaction to wars involving oil-producing regions.
As a result, investors should avoid panic selling and instead view the volatility as a potential buying opportunity, she said.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
