War impact to weigh on stocks anew

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

March 16, 2026 | 12:00am

MANILA, Philippines — Local stocks are seen moving sideways this week with a slight downward bias amid prevailing concerns on the economic impact of the war in the Middle East.

The Philippine Stock Exchange index (PSEi) capped off last week with back-to-back losses, ending Friday’s session slightly above the 6,000 mark at 6,058.94.

Week-on-week, the PSEi fell by 4.14 percent.

Unicapital Securities head of research Wendy Estacio-Cruz said investor sentiment continued to weaken amid concerns over rising oil prices linked to escalating tensions in the Middle East.

Further, she said the index was dragged lower by a higher-than-expected unemployment rate, which stood at 5.8 percent last January, marking its highest level in more than three years.

“In our view, these developments may continue to weigh on market sentiment in the near term, as investors remain cautious amid rising external risks and signs of softening domestic labor conditions,” Estacio-Cruz said.

First Metro Investment Corp. head of research Cristina Ulang, for her part, expects the market to move sideways from 5,950 to 6,200 “as it ponders the dangers and risks of an expanding and protracted war to oil imports.”

As of Friday’s closing, Philstocks Financial research manager Japhet Tantiangco said the local market is trading with a price-to-earnings ratio of 10.2x, below the historical average of 14.4x and the regional average of 18.3x.

He said the marketability ratios show that the local bourse is at bargain levels.

This week, Tantiangco said focus is still expected to be on the conflict in the Middle East, with investors expected to monitor the developments on the war.

“Clear signs that the conflict is nearing its end is expected to boost investors sentiment. However, lack of such is expected to keep weighing on the bourse,” Tantiangco said.

“Investors are also expected to take cues from the movement of global oil prices and the local currency. A further rise in oil prices and a further depreciation of the peso is expected to drag the local market,” he said.