Brief recoveries fail to hold as Middle East tensions and peso weakness dampen investor confidence.
The Philippine Stock Exchange index (PSEi) closed March 31 at 5,948.94, down from 6,426.83 at the start of the month on March 2, marking a net decline of 477.89 points over the period.
March was defined by sharp swings and uneven trading sessions, with the index repeatedly shifting between brief recoveries and renewed declines. Mid-month gains pushed the index back above the 6,000 level, including a short-lived rebound to 6,044.17, but these moves were not sustained as selling pressure returned in the following days.
The Peso at ₱60—The breaking point
The month also saw the index revisit and hover near its year-low range multiple times, underscoring persistent fragility in investor sentiment. Market direction was heavily shaped by external pressures, particularly escalating geopolitical tensions in the Middle East, which continued to influence global risk appetite. At the same time, the weakening Philippine peso, which breached the ₱60 per US dollar level, added further strain to local market confidence.
Despite intermittent recovery attempts, gains were frequently erased as volatility dominated trading activity. By month-end, the index remained under pressure, reflecting cautious positioning from investors navigating both global uncertainty and domestic currency weakness.
Overall, March highlighted a market still searching for stable footing, where rebounds were short-lived and sentiment remained highly reactive to external shocks.
A brutal month for local equities. The PSEi closed March at 5,948.94, losing over 7% of its value as the Peso breached the ₱60 level and Middle East tensions triggered a global flight to safety.
