Manila: Latest developments in the Middle East increased investors' worries on Monday, resulting in the negative close of both the Philippine Stock Exchange index (PSEi) and the peso.

According to Philippines News Agency, the local bourse's main index shed 0.72 percent to 6,054.05 points, and the broader All Shares fell by 0.65 percent to 3,386.52 points. Most of the sectoral gauges also ended the day's trade in the red, led by Financials, which decreased by 2.35 percent, followed by Property at 1.54 percent, Mining and Oil at 0.97 percent, Industrial at 0.86 percent, and Holding Firms at 0.35 percent. The Services sector was the only one to gain during the day, rising by 1.02 percent.

Volume was thin at 789.08 million shares amounting to PHP7.8 billion. Decliners led advancers, 121 to 82, while 69 shares remained unchanged. Luis Limlingan, Regina Capital Development Corporation head of sales, stated, "Philippine equities closed in the red as renewed geopolitical tensions in the Middle East dampened investor sentiment. Concerns escalated after (US President) Donald Trump threatened Iran with a blockade of the Strait of Hormuz, reigniting fears of supply disruptions and a spike in global oil prices."

He noted that prices of crude oil have breached the USD100 per barrel mark following the announcement, "raising inflation risks and weighing on risk assets globally."

The local currency also weakened, closing the day at 60.13 to a U.S. dollar, down from 59.97 at the close on Friday last week. It started the week at 60.25, a depreciation from its 59.75 start in the previous session. It traded between 60.13 and 60.5, bringing the day's average to 60.37. Volume increased to USD1.89 billion from USD1.49 billion at the end of last week.