Stocks tumble as peso hits new record low

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MANILA, Philippines — The local stock market ended the week in the red while the peso slid to a fresh record low against the dollar as investors remained cautious over the potential economic impact of the escalating conflict in the Middle East.

The benchmark Philippine Stock Exchange index tumbled by 0.89 percent or 54.64 points, closing yesterday’s session at 6,058.94.

The broader All Shares index likewise ended in negative territory, sliding by 0.68 percent or 23.29 points to 3,382.11.

Luis Limlingan of Regina Capital said the market declined in line with the broader downturn in global markets as investors reacted to escalating tensions in the Middle East.

“Threats of continued increase in oil prices heightened concerns over inflation and potential policy tightening,” Limlingan said.

“At the same time, a weakening peso and heightened geopolitical uncertainty have made investors more cautious, leading to subdued trading activity,” he said.

Meanwhile, the peso slid to a fresh record low yesterday as demand for the dollar remained strong amid rising oil prices and geopolitical tensions in the Middle East.

Data from the Bankers Association of the Philippines showed the local currency closed at 59.735 per dollar, 35 centavos weaker than Thursday’s 59.385 finish.

“The peso’s move to around 59.7 per dollar is largely due to strong dollar demand and rising oil prices amid heightened geopolitical tensions in the Middle East, which typically pressures currencies of oil-importing economies like the Philippines,” a trader said.

The trader added that the local currency could remain volatile in the near term.