Share prices closed lower on Thursday as investors continued to shun risk amid a confluence of unsettling developments overseas and a softening local currency.
The benchmark PSEi shed 0.66 percent, or 41.93 points, to finish at 6,295.55.
The broader All Shares also retreated, giving up 0.67 percent, or 25.11 points, at 3,723.14.
Losers significantly outnumbered gainers, with 112 stocks declining against 75 advancing, while 56 remained unchanged.
Total trade value for the day reached P7.33 billion on 75,983 trades that involved 2.41 billion shares.
Foreign funds contributed to the downturn, ending as net sellers with P24.38 million worth of shares, reflecting P2.95 billion in buying versus P2.98 billion in selling.
Market sentiment was heavily influenced by a fresh wave of negative news from the United States, Luis Limlingan, managing director at Regina Capital and Development Corp., said.
Investors were forced to “digest concerns surfaced from a rumor regarding a potential Fed leadership change,” Limlingan added.
The local market saw global markets rattled by reports, citing an unidentified White House official, suggesting US President Donald Trump might soon move to replace Federal Reserve Chair Jerome Powell.
While Trump later stated he was “not planning to do so,” the initial scare highlighted persistent political uncertainties surrounding key economic institutions.
Adding to the domestic market’s woes, the Philippine peso experienced further depreciation against the US dollar, a factor that also ”contributed to the market’s drop,“ Japhet Tantiangco, research manager at Philstocks Financial Inc., said.
The local currency closed Thursday at 57.29 to the dollar, weaker than its 57.085 finish on Wednesday.
It opened at 57.05, traded within a range of 56.95 to 57.30 throughout the day.
Sector-wise, the stock market saw broad declines, with all indices closing in negative territory. The mining sector bore the brunt of the selling, experiencing the steepest drop of 2.35 percent, Tantiangco said.
This broad-based weakness underscores a cautious environment where both external headwinds and local currency dynamics are prompting investors to reduce their exposure.
