PSE Index Falls Amid Investor Jitters Over Iran Crisis

The benchmark Philippine Stock Exchange index (PSE) declined to 5,941.52 points on Monday, down 35.25 points or 0.59%, as investor sentiment weakened amid uncertainty over peace negotiations related to the Iran crisis.

The Philippine Stock Exchange (PSE) Index, May 18, 2026

Investor caution triggered a sell-off immediately after the market opened, dragging the index to an intraday low of 5,928.75 points before bargain hunting helped trim losses.

Trading value declined by nearly a third to PHP4.04 billion, reflecting investor concerns over developments involving the Strait of Hormuz, a strategic waterway that accounts for roughly one-fifth of global crude oil shipments.

Uncertainty surrounding the Strait of Hormuz — amid negotiations involving the United States and Iran — has contributed to oil prices rising above $100 per barrel, increasing concerns over higher operating costs for companies across sectors, including property, banking and industry.

Meanwhile, the peso’s depreciation against the U.S. dollar to PHP61 per dollar added pressure on conglomerates, food manufacturers and power utilities that rely heavily on imports.

Only the property sector index posted gains, edging up 0.19% on bargain hunting, while other sectors declined.

The financials index fell 1.04%, as investors worried banks could face rising credit risks if higher oil prices and global uncertainty weaken economic activity.

Among actively traded stocks, BDO Unibank, Bank of the Philippine Islands, Jollibee Foods Corporation, Ayala Corporation and Ayala Land declined amid concerns over the economic impact of tensions affecting oil supply routes.

Meanwhile, Manila Electric Company, Puregold Price Club and DigiPlus Interactive Corp. advanced on expectations they may prove resilient amid uncertainty.

Market bellwether SM Investments Corporation, whose share price had fallen from PHP900 to PHP600, gained 0.17% on bargain hunting as local investors remained cautious.

Foreign investors were net sellers by PHP225 million, with foreign buying at PHP1.887 billion and foreign selling at PHP2.113 billion.

Market breadth remained negative, with 117 decliners, 65 gainers and 68 unchanged stocks. Analysts expect market volatility to persist as negotiations between the United States and Iran remain unresolved.