PSE Index Declines as Hopes for Iran Peace Fade

The Philippine Stock Exchange (PSE) index declined to 5,898.08 points on Tuesday, falling 44.08 points or 0.74%, as optimism over a potential de-escalation in the Iran crisis weakened.

The Philippine Stock Exchange (PSE) Index, May 5, 2026

The market opened on an optimistic note, climbing to an intraday high of 5,985.97, before reversing course amid reports that Iran had closed the Strait of Hormuz and Israel continued its bombing campaign in Lebanon.

Renewed tensions in the region—particularly developments involving Strait of Hormuz—triggered a broad sell-off, dragging the index down to its intraday low by the close.

Investor sentiment also softened as prospects for a lasting ceasefire dimmed, with unresolved issues complicating peace negotiations.

Still, the continuation of a temporary ceasefire provided a modest silver lining.

Market breadth was negative, with losers outpacing gainers 106 to 77. Value turnover reached P5.02 billion, about 17% below the daily average.

Net foreign buying was muted at P38 million, indicating limited appetite for bargain hunting amid persistent economic uncertainty. The financial sector led the decline, dropping 1.75%.

BDO Unibank slipped 0.09% to P114.90, while Bank of the Philippine Islands fell 3.37% to P88.90.