The Philippine Stock Exchange index (PSEi) slipped on Friday, shedding 1.13 percent or 73.15 points to close at 6,395.57 as investors turned risk-averse ahead of a crucial US trade negotiation deadline and amid concerns over the country’s rising debt burden.

Sentiment was weighed down further after the national government’s outstanding debt rose again in May, prompting investors to lock in gains despite a benign domestic inflation print.

“Philippine shares were sold down as investors booked profits despite June inflation coming in relatively stable at 1.4 percent,” said Luis Limlingan, head of sales at Regina Capital Development Corporation.

Nevertheless, trading activity remained brisk, with net value turnover reaching P6.21 billion – above the year-to-date average of P5.77 billion. Foreign investors were net buyers, posting inflows worth P295.82 million.

Among sectoral indices, only the industrials held steady, while the rest ended in the red. The property sector led the decline, tumbling by 2.17 percent. Overall market breadth was negative, with 111 losers edging out 85 gainers, while 54 issues were unchanged.

Limlingan noted that US markets advanced overnight on the back of positive jobs data, which buoyed confidence in the American economy despite global uncertainties.

However, commodities pulled back: spot gold slid 1.00 percent to USD 325.48 per ounce on stronger US employment numbers, while Brent crude dipped 0.45 percent to USD 68.80 per barrel on demand concerns stemming from the potential return of US tariffs and expectations of increased supply from major producers.

Meanwhile, the peso opened and closed at 56.40 against the US dollar, with an intraday average of 56.484, according to the Bankers Association of the Philippines.