The Philippine Stock Exchange index (PSEi) snapped a four-day winning streak on Friday, closing lower due to late-session profit-taking and renewed global uncertainties. The benchmark index dropped 43.33 points or 0.7 percent to settle at 6,364.94 — still among two-week highs and near five-month peaks last seen in January.

The pullback came after the Bangko Sentral ng Pilipinas (BSP) downgraded its balance of payments (BOP) forecasts, citing persistent external risks.

For the month of June, the PSEi gained 23.41 points or 0.4 percent, marking its fourth monthly advance in five months, after slipping 0.2 percent in May.

The broader correction also tracked geopolitical concerns after Iran denied plans to resume nuclear talks with the US, despite earlier signals of a possible meeting floated by former President Donald Trump. Tehran remains skeptical of Israel’s commitment to a ceasefire and has vowed to respond if provoked. Market sentiment also wavered following an intercepted call suggesting Iran downplayed the extent of US airstrike damage on 21 June.

In the US, investor focus turned to fiscal policy and interest rates. The Senate voted 51-49 to begin debate on Trump's proposed $4.5 trillion tax cut package. Trump also signaled he would appoint a Federal Reserve chair inclined to cut rates.

“The local bourse opened higher on quarter-end window dressing but closed in the red as investors booked gains ahead of key data releases,” said Luis Limlingan, head of sales at Regina Capital Development Corp.

Market participants are eyeing the June inflation report due Friday, as well as Tuesday’s PMI and business confidence data. Expectations of cooling inflation may bolster hopes for a BSP rate cut. Overseas, investors await US labor data and Federal Reserve Chair Jerome Powell’s remarks for cues on policy direction.

In the currency market, the peso closed stronger at P56.33 to the US dollar from an opening of P56.54. The average trading rate stood at P56.378, according to the Bankers Association of the Philippines.