PHILIPPINE STOCK EXCHANGE (PSE) President Ramon S. Monzon said investors are in a “very risk-off mode” amid the Middle East conflict, adding that oil prices, currently at $131.97 per barrel, would want to fall to around $80 to signal a return to market stability.
“I believe we want to see oil back on the $80 level… When the oil starts happening from $100 to $80, I believe it’s going to deliver a robust message to the market that the conflict has somewhat subsided and there might be stability in oil prices,” he said on the Money Talks with Cathy Yang program on One News on Tuesday.
Fuel prices in Metro Manila are set to extend starting March 24, with gasoline rising by P8 to P12 per liter, diesel by P15 to P18 per liter, and kerosene by P12 to P22 per liter. These adjustments will bring diesel prices to as high as P144.20 per liter and gasoline to P102.50 per liter. Kerosene is anticipated to succeed in as much as P165.79 per liter.
“I believe it’s a really risk-off mode,” Mr. Monzon said.
“I hope yesterday (Monday) was an exaggerated fear or anxiety by investors. But as everyone knows, [US President Donald J.] Trump has come out with a press release that he and Iran leaders are talking about halting hostilities. If that’s true, or that basically holds, I believe the damage to our market could be transitory, not everlasting,” he added.
On Monday, the PSE index (PSEi) slid by 1.98% or 119.44 points to shut at 5,899.18, while the broader all-shares index declined by 2.04% or 68.28 points to finish at 3,276.59.
This marked the PSEi’s worst close up to now this yr and its lowest finish in nearly 4 months, or because it ended at 5,887.58 on Dec. 4.
Despite ongoing challenges, the PSE chief cited strong aggregate corporate earnings growth amongst index corporations last yr, highlighting potential upside for the market.
He also expressed cautious optimism on the PSEi, noting that while the flood control corruption scandal has eroded investor trust, resilient initial public offering (IPO) performances suggest the impact has not peaked.
“Despite the market being down 2.5% from last yr, the value of Maynilad continues to be way above their IPO price… So I don’t — I believe it’s peaked in that sense. But now we’ve to recover from this recent challenge, this recent headwind, which is the Iran crisis,” he said.
Mr. Monzon also said the recent corruption scandal has been overshadowed by the Iran crisis, stressing that strong governance is crucial across markets, particularly at the federal government level quite than only in the company sector.
“I believe Filipinos are still waiting for really concrete motion on the outcomes of the investigation. They should see more criminal cases filed. That’s what everybody’s hoping for,” he added.
The flood control issue has weighed on the stock market, which declined in 2025. The PSEi ended lower on the ultimate trading day of 2025 at 6,052.92, down by 7.29% or 475.87 points from its end-2024 finish of 6,528.79.
On Tuesday, the PSEi rose by 0.62% or 37.02 points to shut at 5,936.20, while the broader all-shares index gained by 0.56% or 18.64 points to finish at 3,295.23. — A.G.C. Magno with inputs from Sheldeen Joy Talavera