The Philippine Stock Exchange index (PSEi) extended its losing streak to a third straight session on Thursday, as investor sentiment remained dampened by concerns over the U.S. economy. Meanwhile, the Philippine peso closed flat against the U.S. dollar.
The benchmark PSEi dropped 0.96%, settling at 6,638.54 points, while the broader All Shares index slipped 0.67% to 3,734.94.
“The market’s decline reflects persistent unease over President-elect Donald Trump’s tariff threats and lingering uncertainties surrounding the Federal Reserve’s approach to policy easing,” said Japhet Tantiangco, research manager at Philstocks Financials, Inc.
Sector-wide losses
All sectors ended in the red, with Industrials experiencing the steepest decline, falling 2.10%. Other significant sector losses included:
- Property: Down 1.48%
- Financials: Down 0.71%
- Holding Firms: Down 0.68%
- Services: Down 0.03%
- Mining and Oil: Down 0.02%
Foreign selling and tepid trading
Foreign investor activity also contributed to the decline, as net foreign selling for the day reached ₱1.17 billion. Trading activity was subdued, with net value turnover hitting ₱4.48 billion, below the daily average.
Peso holds ground against the dollar
The Philippine peso remained steady, closing at ₱58.67 against the U.S. dollar, only slightly firmer than the previous day’s close of ₱58.71.
The peso opened at ₱58.70, stronger than Wednesday’s opening of ₱58.92. It traded within a narrow range of ₱58.61 to ₱58.78, with an average rate of ₱58.69.
Despite the flat performance, trade volume in the foreign exchange market increased to $1.46 billion, up from the previous day’s $1.38 billion.
Outlook
Market sentiment remains cautious as global and domestic uncertainties weigh on investor decisions. Analysts point to the need for clarity on U.S. fiscal policies and Federal Reserve actions, alongside monitoring local factors, as critical drivers for the market’s direction in the coming weeks.
Investors are advised to remain vigilant amid the challenging macroeconomic environment. Potential headwinds from external markets are likely to influence local market performance.