ME war wreaks havoc on stocks, peso

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MANILA, Philippines — Share prices took another major hit while the peso plunged to a new low of 60.30 yesterday as the financial market continued to reel amid the Middle East turmoil.

The benchmark Philippine Stock Exchange index tumbled by 1.98 percent or 119.44 points to end yesterday’s session at 5,899.18.

The broader All Shares index likewise plummeted by 2.04 percent or 68.28 points, closing at 3,276.59.

Market breadth was negative as decliners battered advancers, 167 to 46, while 58 issues were unchanged.

At the foreign exchange market, the peso closed at a fresh record low of 60.30 to a dollar yesterday, weaker by 20 centavos from Thursday’s 60.10 finish, extending its slide deeper past the 60 level.

“Philippine equities kicked off the week with a massive selloff as Middle East tensions further deepened concerns about the inflationary effects of oil shocks on the global economy, while the (US) Fed’s hawkish pause added to investors’ worries,” AP Securities Inc. said.

Luis Limlingan of Regina Capital said the conflict in the Middle East has shown no signs of de-escalation, dampening investor sentiment.

“Rising oil prices further weighed on the market, heightening concerns over inflation and input costs. As a result, cautious trading prevailed amid expectations of sustained price pressures and potential policy tightening,” he said.

A forex trader said the peso remained under pressure following developments in the Middle East over the weekend.

“The peso depreciated further after US President Trump intensified his threats to Iran over the weekend. The local currency might remain weak as US-Iran conflict remains heightened in the near term,” the trader said.