Stocks tumble as Trump rejects Iran proposal

Philippine stocks opened the week on a negative note on Tuesday due to concerns over potential oil supply disruptions. The benchmark Philippine Stock Exchange index (PSEi) ended the previous day at 5,788.87, down 0.64 percent or 37.1 points. The broader All Shares index also fell by 0.72 percent or 23.49 points, closing at 3,222.72.

Luis Limlingan of Regina Capital attributed the decline in the PSEi to a negative market sentiment following US President Donald Trump's rejection of Iran's latest proposal to end the war and reopen the Strait of Hormuz. Limlingan stated that the proposal renewed concerns over prolonged disruptions in oil supplies and potentially elevated crude prices.

Investors remained cautious, contributing to the selling pressure in the local market. AB Capital Securities noted that the PSEi was weak throughout the day, dropping from 5,800 but holding above 5,770, which now appeared as a more stable near-term floor after two sessions closing above the level. AB Capital Securities identified 5,770 as the key level to watch, with a sustained hold strengthening the base and a break below weakening the setup.

All sectoral gauges were down, except for property, which saw a modest increase of 0.06 percent. Mining and oil indexes dropped by the most, with the mining sector falling 3.25 percent and the oil sector losing 1.61 percent. Total turnover value started the week at P5.19 billion. Out of 179 issues traded, 128 declined while 51 advanced, and 66 had no change in hands.

ICTSI led the trading, closing 0.27 percent higher at P922.50 per share. PNB Holdings remained unchanged at P1.20, while SM Investments declined by 0.29 percent to P508.50.