The Philippine Stock Exchange index (PSEi) extended its decline on Thursday, falling 1.04 percent or 65.69 points to close at 6,252.73, as investors grew increasingly cautious ahead of the looming 1 August US trade negotiations deadline.

Market sentiment was further dampened by the continued depreciation of the peso and uncertainty over future monetary policy in the US following the Federal Reserve’s latest decision to keep interest rates unchanged without offering a definitive policy outlook.

“Investors are already cautious in their positions about the potential impact and how it might affect stock market movements ahead of tomorrow's tariff deadline,” said Luis Limlingan, Head of Sales at Regina Capital Development Corporation.

“Days of continuous depreciation of PHP against USD takes a toll on the overall market sentiment.”

The peso slipped further, closing at P58.32 to the dollar from P57.58 on Wednesday, based on data from the Bankers Association of the Philippines.

All sectoral indices ended in the red, led by mining and oil, which plunged 3.01 percent. Market breadth was negative, with 134 decliners outnumbering 61 gainers, while 56 issues were unchanged.

Trading was brisk, with net value turnover reaching P7.45 billion, excluding block sales. Foreign investors remained net buyers with inflows amounting to P228.54 million.

Wall Street’s mixed performance overnight also contributed to the subdued mood, as investors await key US economic data and corporate earnings reports that could influence future policy moves.