Inflation worries and fresh U.S. data weighed on the local bourse on Thursday, with the Philippine Stock Exchange index (PSEi) dropping 39.66 points to close at 6,371.75, while the broader All Shares also declined 26.17 points to 3,425.57.
The Philippine peso declined, closing at its lowest level since November 3, 2022.
"The local market dropped by 39.66 points (0.62%) to 6,371.75 following the rise in the U.S.' long-term Treasury yields. The climb in yields resulted in the further decline of the Philippine peso against the U.S. dollar, which in turn weighed on the local bourse," Philstock Financials, Inc. research and engagement officer Mikhail Plopenio said.
"Also, inflation worries were heightened after the Bangko Sentral ng Pilipinas stated that there is still a high probability that inflation may breach the upper end of the 2% - 4% target range. With its decline, the local bourse joined its neighboring peers, which also traded lower for Thursday's session," Plopenio added.
After Thursday's close, all sectors were in negative territory, with Properties the biggest loser, declining 1.49%, followed by Industrials, which fell 1.27%. Only Holding Firms were in positive territory.
Losers edged gainers 132 to 57.
Meanwhile, the peso closed at 58.635 to a dollar, down from the 58.42 closing on Wednesday.
The peso's closing was its weakest performance since the 58.80 finish on Nov. 3, 2022.
It opened the day at 58.5 and traded between 58.5 and 58.73.
The weighted average for the day was 58.62.
The total trade volume slightly declined to $1.38 billion from $1.39 billion.
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