Manila:Strong selling pressure due to economic challenges led to a decline in the Philippine Stock Exchange index (PSEi) on Friday, although the peso remained nearly unchanged.
According to Philippines News Agency, the main index of the local bourse decreased by 1.18 percent to close at 5,593.49 points, while the broader All Shares index dropped by 0.66 percent to 3,154.93 points. Most sectoral indices ended lower, with Financials being the only exception, rising by 0.99 percent. The Services sector experienced the largest decrease at 3.11 percent, followed by Mining and Oil at 1.73 percent, Industrial at 1.07 percent, Property at 0.80 percent, and Holding Firms at 0.35 percent.
The trading volume reached 729.24 million shares, amounting to PHP6.4 billion. Decliners outnumbered advancers, with 97 stocks falling and 84 rising, while 60 issues remained unchanged. Luis Limlingan, head of sales at Regina Capital Development Corporation, cited strong selling pressure as a key factor in the market's decline, along with ongoing concerns about the depreciation of the Philippine peso against the US dollar and its potential impact on the domestic economy. These factors have contributed to a cautious sentiment among investors, limiting their risk appetite amid persistent macroeconomic headwinds.
Meanwhile, the peso closed marginally weaker against the U.S. dollar at 63.72, compared to the previous day's close of 63.70. The local currency opened at 63.85, down from the prior session's 63.25, fluctuating between 63.64 and 63.94 throughout the day and resulting in a weighted average of 63.81. The trading volume in the foreign exchange market increased to USD2.2 billion from USD1.72 billion the previous day.