Local Stock Market Weakened as Israel-Palestine Conflict Raises Investor Concerns.
The local stock market experienced a decline as investors adopted cautious measures amidst the escalating attacks in Israel and Palestine. The Philippine Stock Exchange index (PSEi) dropped by 7.79 points or 0.12 percent, closing at 6,252.16 for the day. The Holding Firms and Financials sectors contributed to these losses, experiencing declines of 0.25 percent and 0.86 percent, respectively.
Trade volumes amounted to 771 million shares, valued at approximately P5.7 billion. Gainers outnumbered losers with a ratio of 94 to 86, while 56 remained unchanged.
China Bank Capital Corporation Managing Director Juan Paolo Colet explained the decline, stating, “The index slipped and value turnover fell as investors reacted to the armed conflict between Israel and Hamas that threatens to destabilize the Middle East.” Colet added, “Many market participants opted to stay on the sidelines as they adopted a wait-and-see stance while the situation unfolds.”
Philstocks Financial Assistant Research Manager Claire Alviar highlighted the impact of domestic factors as well, stating, “the local bourse dropped as investors continued to assess the elevated inflation in the country, strong labor market, as well as the implications of these data on monetary policy.” Alviar also acknowledged that “concerns over the ongoing Israel-Gaza conflict weighed further on sentiment.”
Despite the overall market loss, several sector indices managed to secure gains. The Miners sector achieved the top spot, registering a 0.92 percent increase, followed by Services, which advanced by 0.41 percent.
Looking at the broader economic context, Regina Capital Development Corporation Managing Director Luis Limlingan noted that Philippine shares started the week slightly lower as investors awaited a fresh batch of economic data. Key economic indicators due to be released in the US this week include the September Producer Price Index (PPI) on Oct. 11, Consumer Price Index (CPI) on Oct. 12, the University of Michigan Sentiment on Oct. 13, the Federal Open Market Committee (FOMC) meeting minutes on Oct. 12, and the Philippines trade balance figure.
As investors continue to monitor the developments in the Israel-Palestine conflict and assess the impact of domestic economic factors, the local stock market remains under scrutiny.
