Share prices dropped Monday on heightened risk aversion as the crude spiked to 2008 levels.
The peso closed to its weakest in 30 months.
The Philippine Stock Exchange index (PSEi) was down 53.94 points to 7,288.07, a 0.73 percent drop.
The broader all shares index was down 28.54 points to 3,866.98, a 0.73 percent drop.
Losers edged gainers 147 to 66 with 334 stocks unchanged. Trading turnover reached P8.73 billion.
Having surged 18 percent in wild early action, Brent was last quoted $9.95 higher at $128.06, while US crude rose $8.35 to $124.03.
That jump will act as a tax on consumers and the potential blow to global economic growth saw S&P 500 stock futures drop 1.3 percent, while Nasdaq futures shed 1.7 percent. The US 10-year bond yields also dropped to their lowest since early January.
WTI crude futures traded up 8 percent to above $125/ barrel, highest since mid-2008. At one point, the price topped $130/barrel. Brent crude traded up 9 percent higher to $128.60/barrel.
The peso closed at 52.18 to the dollar, down from 51.74 on Friday.
The opened at 51.90 and hit a high of 51.85 and a low of 52.19. Trading turnover reached $1.58 billion.
Michael Ricafort, chief economist at Rizal Banking and Commercial Corp. (RCBC), said this is weakest close for the peso since closing at 52.211 on Sept. 25, 2019.
This developed after global oil prices again sharply increased to new highs and after a planned embargo on oil imports from Russia was announced, he said.
Astro del Castillo, managing director at First Grade Finance Inc., said the peso may continue to be weak amid the slowly opening economy which increases demand from products and services and with the Russia-Ukraine conflict being a contributory factor.
“As uncertainty remains, it will further weaken the peso. Investors also flock to safe assets like the dollar,” he said.
Emerging Asian markets were a sea of red on Monday, with the Philippines and Thailand particularly hit by heightening concerns about the impact of the Ukraine-Russia conflict on inflation and a global economic recovery, Reuters reported.
Markets are bracing for the fallout from rising commodity prices, particularly higher inflation which could pressure the US Federal Reserve and other central banks to quickly tighten monetary policy, just as the world emerges from its pandemic slump.
“Philippine shares dropped as the Russia-Ukraine conflict sparked nuclear fears. The news of Russia’s invasion overshadowed positive US employment data for February that was released Friday morning,” said Luis Limlingan, managing director at Regina Capital and Development Corp.
“Aside from monitoring the Ukraine-Russia development, investors are also waiting for several economic data reports to be released throughout the week,” he added.
Limlingan noted that palladium extended its rally to near a 10-month high within striking distance of $3,000 an ounce on Friday, as concerns over supply shortages from top-producer Russia mounted bolstered demand for safe-haven gold. Spot palladium was up 6.1 percent to $2,943.56 per ounce. Spot gold prices jumped 1 percent to $1,954.53 per ounce and were up about 3.5 percent for the week so far. US gold futures climbed 1.1 percent to $1,956.70.
Most actively traded BDO Unibank Inc. was steady at P130. Semirara Mining and Power Corp. was up P2.20 to P34.10. Metropolitan Bank and Trust Co. was down P2.85 to P55.30.
SM Prime Holdings Inc. was up P0.30 to P39.50. International Container Terminal Services Inc. was up P2.80 to P229. Solar Philippines Nueva Ecija Corp. was down P0.13 to P1.99.
AC Energy Corp. was down P0.07 to P8.06. DMCI Holdings Inc. was up P0.30 to P9.50.
Universal Robina Corp. was down P5.10 to P114.60. Globe Telecom Inc. was down P30 to P2,540.
