The Philippine Stock Exchange index (PSEi) ended Wednesday in the red, shedding 0.53% or 33.94 points to close at 6,378.56 as investors opted to pocket gains after two straight sessions of advances. 

The sell-off came amid renewed market caution following news that the national government’s outstanding debt had soared to a record high of P16.75 trillion.

Adding to the downward pressure, foreign investors turned net sellers, with net outflows totaling P129.60 million. Total value turnover reached P5.81 billion.

Sector performance was mixed. The services sector led the gainers with a modest 0.35% increase, while mining and oil stocks dragged, declining 0.99%. Despite the index drop, overall market breadth was positive with 115 advancers outnumbering 78 decliners, while 45 stocks were unchanged.

Puregold Price Club, Inc. emerged as the day’s top index performer, climbing 3.55% to P32.10. Conversely, SM Prime Holdings, Inc. was the biggest laggard, falling 2.75% to P22.95.

“Philippine investors sold ahead of the May CPI release scheduled for tomorrow, with many preferring to wait for confirmation of the final print before making fresh moves,” said Luis Limlingan, Head of Sales at Regina Capital Development Corporation.

He also noted that U.S. markets closed slightly higher on Tuesday, buoyed by gains in the tech sector and optimism surrounding U.S.-China trade discussions. 

“There were also fresh macro signals, including an unexpected rise in job openings for April. Meanwhile, oil prices rose on heightened geopolitical tensions, particularly the intensifying conflict in Ukraine and Iran’s anticipated rejection of a proposed U.S. nuclear deal,” Limlingan added.

In the currency market, the Philippine peso opened at 55.80 and closed slightly stronger at 55.771 against the U.S. dollar. The weighted average stood at 55.789, according to data from the Bankers Association of the Philippines.