The local bourse ended in negative territory on Thursday as investors locked in gains following a two-day rally, with the benchmark Philippine Stock Exchange index (PSEi) declining 0.42 percent to 6,471.25.

Market sentiment was dampened by negative cues from Wall Street, with US investors likewise locking in profits over the past 24 hours after strong rallies that pushed indices to historic levels. 

The Dow Jones Industrial Average recently crossed the 50,000 milestone — a psychological record high. However, this also triggered portfolio rebalancing and profit-taking among institutional investors, leading to short-term weakness across equities.

When American markets pause or decline after rallies, emerging markets like the Philippines often experience reduced foreign inflows or mild outflows as investors shift back toward safer US assets.

Trading activity remained subdued, with total value turnover reaching P5.66 billion, well below the year-to-date average of about P6.40 billion, reflecting cautious investor positioning. Foreign investors likewise turned net sellers, registering P96.67 million in net outflows and breaking a multi-day streak of foreign inflows.

Sector performance was mixed, with the mining sector leading gains, rising 2.49 percent and supported by commodity price strength. Meanwhile, the property sector lagged, dropping 1.83 percent. Overall market breadth was negative, with decliners outnumbering advancers, 122 to 78.

Among index heavyweights, International Container Terminal Services, Inc. (ICT) emerged as the top performer, climbing 2.84 percent to P689.00 per share. The Enrique Razon-led port operator recently extended its Melbourne terminal contract to 2066, significantly lengthening concession life and improving long-term earnings visibility. The deal includes an ongoing investment program expected to expand terminal capacity to about 1.6 million TEUs, supporting future volume growth and locking in long-term revenue streams.

On the other hand, San Miguel Corporation (SMC) posted the largest decline among index members, falling 5.65 percent to P71.00. The conglomerate’s stock has dropped roughly 11 percent month on month, indicating sustained selling momentum. Philippine equities tend to be vulnerable to selling when there are no strong trading drivers or new corporate catalysts.

Conglomerates like SMC are particularly sensitive to this trend because they rely heavily on macro- and sentiment-driven buying rather than single-sector momentum. As a diversified holding company, SMC also tends to lag during sessions when investors rotate toward logistics-linked firms such as ICTSI, which may explain its decline on Thursday.

Meanwhile, the local currency extended its recent rally, closing at P58.11 against the U.S. dollar as of Thursday afternoon, strengthening by P0.18 from Wednesday’s P58.29 finish. Continued foreign portfolio inflows into Philippine equities and bonds helped increase dollar supply, supporting the peso’s appreciation.

The Federal Reserve has recently softened its stance on further monetary tightening, easing global dollar demand and reducing upward pressure on emerging-market currencies like the peso. Renewed uncertainty over the Fed’s independence under the Trump administration, as well as recurring tariff threats against other nations, has likewise tempered demand for the greenback after its surge last month following the US takeover of Venezuela’s oil assets.

The peso’s appreciation also helps ease foreign exchange costs for dollar-earning exporters and logistics firms such as recent PSEi leaders Jollibee Foods Corp. and ICTSI. A firmer peso can improve net margins by reducing the peso cost of dollar-based expenses, a factor that often attracts yield-seeking flows into port operators.