The Philippine Stock Exchange Index (PSEi) closed below the 6,100 mark on Monday, marking a significant breach of support as investor sentiment deteriorated.
The decline was driven by a confluence of external geopolitical shocks and domestic macroeconomic headwinds, reflecting a broad-based loss of confidence among market participants.
Renewed tensions between the United States and Iran emerged as the primary catalyst for the sell-off.
The escalation in the Middle East has reignited fears regarding global energy supply chains and potential inflationary pressures, prompting investors to reduce exposure to emerging market equities.
This geopolitical risk premium has been a recurring theme in recent trading sessions, with Asian markets broadly retreating as hopes for a near-term peace agreement between Washington and Tehran have waned.
Compounding the external pressure, domestic concerns over the Philippines' growth outlook intensified.