Bloodbath sa Stock Market: PSEi Bumagsak 5%, Peso Hits All-Time Low P59.50
Monday was absolutely brutal for Philippine financial markets. The PSEi crashed nearly 5 percent — shedding 314 points to close at 6,006.22 — its lowest level in five months. Every single one of the 30 blue-chip stocks ended in the red, a full wipeout that left investors reeling.
The peso wasn't spared either. It weakened to a historic P59.50 against the US dollar, surpassing the previous record low of P59.44 set back in January. The currency started the session at P59.25 but faced relentless selling pressure as the global risk-off mood intensified.
The culprit? The escalating Middle East war that has effectively shut down the Strait of Hormuz for the first time in modern history. Global crude oil spiked close to $120 a barrel, sending shockwaves through every emerging market dependent on oil imports — and the Philippines, as a net oil importer, was right in the crosshairs.
Analysts are warning of a potential "double pressure" scenario: a weakening peso combined with skyrocketing energy costs could trigger a vicious cycle of rising inflation and slower economic growth. The Bangko Sentral ng Pilipinas may be forced to maintain elevated interest rates for longer, dashing hopes of any near-term monetary easing.
The carnage wasn't limited to Manila — Japan's Nikkei plunged over 5% and South Korea's Kospi sank 6%. Market watchers say the 6,000-point level on the PSEi, once a psychological floor, has now been breached, and further downside is likely if geopolitical tensions don't ease soon.
Source: Manila Bulletin
