The stock market took its deepest plunge for the year as concerns over escalating geopolitical tensions overseas and delayed rate cuts at home prevailed.

The benchmark Philippine Stock Exchange index (PSEi) plummeted for the ninth straight session, losing by 2.4 percent or 157.46 points to end at 6,404.97.

The broader All Shares index likewise sunk deeper in the red, dropping by 1.96 percent or 68.26 point to close at 3,409.85.

Luis Limlingan of Regina Capital said investor confidence has waned amid escalating geopolitical tensions overseas.

'Philippine shares experienced the largest sell off year-to-date as the market touched the 6,400 level, falling by 2.4 percent spurred by increased yields and heightened worries over escalating tensions in the Middle East, triggered by Iran's airstrike on Israel last Saturday,' he said.

According to Limlingan, the PSEi has now wiped out most of its gains, ending the session with a year-to-date performance of -0.7 percent.

Philstocks Financial research and engagement officer Mikhail Plopenio said the bourse is now on its longest losing streak since October 2016 as it dropped for nine consecutive days with Tuesday's decline.

'The local market plunged as investors were weighed by negative factors offshore and at home. The continuous selloff was due to the increasing tensions in the Middle East and worries regarding possibly delayed rate cuts by the BSP amid upside risks to inflation,' he said.

Plopenio said negative cues from Wall Street amid rising treasury yields also contributed to the market's drop.

He said foreign funds exited yesterday with net outflows amounting to P1.19 billion.

Net market value turnover, however, was higher than the year-to-date average of P5.08 billion as it stood at P6.16 billion.


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