PSE Sinks Deeper Into the Red Amid Hormuz Disruption

The Philippine Stock Exchange (PSE) index fell further on Tuesday, slipping below the 5,900 level and closing at its intraday low of 5,896.80, down 44.72 points or 0.75%, as investors worried about the economy amid renewed tensions in the Middle East.

The Philippine Stock Exchange (PSE) Index, May 19, 2026

All sectoral indices ended in negative territory, with the property sector posting the biggest decline at 1.33%.

Investors feared that the Iran crisis and the resulting rise in business costs could slow real estate development activity, as higher prices and weaker property demand weigh on the sector.

The mining and oil index also ended lower, though only marginally, slipping 0.07%, as investors continued to view gold as a safe-haven asset amid geopolitical uncertainty.

Apex Mining gained 0.49%, helping limit losses in the mining and oil sector.

Meanwhile, market bellwether SM Investments fell below the P600 level, closing at P598, down roughly 30% from its previous high of P900, after heavy selling pressure at the opening bell.

Banking and consumer stocks also declined on concerns that prolonged geopolitical tensions could hurt economic activity and consumer spending.

Bank of the Philippine Islands fell 0.84% to P88.55, while Jollibee Foods Corp. dropped 1.70% to P133.

Trading remained subdued, with total value turnover reaching only P5.36 billion, below average market activity levels. Market breadth was negative, with 107 decliners, 63 gainers, and 74 unchanged issues. BDO Unibank closed at P115.

Foreign investors were net sellers by P680 million, with foreign buying amounting to P2.495 billion and foreign selling reaching P3.175 billion.

Analysts said the market is likely to remain weak amid fears of renewed hostilities in the Middle East.

While a ceasefire remains in place, investors are wary that another escalation could push crude oil prices above $100 per barrel, particularly if shipping through the Strait of Hormuz is disrupted.