Market weakens off profit taking as peso extends rally

The benchmark index fizzled out on to end the trading week on Friday, dipping to 6384.58, down by 1.3 percent to finish off the trading week as investors continued to cash out following the midweek rally.

Investor sentiment was fueled by lingering uncertainty over the Bangko Sentral ng Pilipinas (BSP)’s looming Monetary Board meeting next Thursday, wherein economists and market participants alike are anticipating a further reduction to the BSP’s key policy rate following disappointing gross domestic product (GDP) growth rate figures for the fourth quarter and full-year 2025.

Negative cues from Wall Street persisted, with American investors likewise cashing out profits after the Dow Jones reached a record psychological level of 50,000.  Upcoming U.S. inflation data also played a hand in the apprehension of American and Filipino investors alike, with the US’ inflation data acting as a key signal for the Federal Reserve’s monetary policy decision making — which the BSP will take into account in the MB’s upcoming meeting.

Foreign investors remained net sellers for the second consecutive trading day, with outflows of P451.64 million. Trading was quite active on Friday, with net value turnover at P6.69 billion, higher than the year’s to date average of P6.42 billion.

All sectors finished in the red, led by mining and oil, which slid 3.34 percent. Services followed closely behind, down 3.01 percent. Decliners edged advancers, 115 to 74.

Among blue chips, Semirara Mining and Power Corp. (SCC) gained 2.95 percent to P33.20 per share. 

SCC’s strong coal prices and robust power-generation earnings has supported high dividend payouts — which investors have appreciated as a consistent source of confidence in the stock. 

Meanwhile, Thursday’s winner International Container Services Inc. (ICT) reversed course on Friday, finishing as the largest decliner, down 4.50 percent to P658 per share.

While the local bourse finished the week in negative territory, the Philippine peso continued its rally, settling at ₱58.02 per US dollar on Friday, strengthening from Thursday’s ₱58.11 close and inching closer to the P57 per dollar psychological mark.

Recent global forex trading has leaned toward expectations that the US Federal Reserve may avoid aggressive additional tightening, tempering demand for the dollar. When US yields ease or rate hike expectations soften, emerging market currencies such as the peso tend to strengthen as capital rotates toward higher-yielding or risk-sensitive assets.

Foreign buying in Philippine equities and bonds has also increased as of late, helping boost demand for pesos. Stronger inflows typically require conversion of dollars into local currency, supporting peso gains.

In addition, recent Philippine economic data—including contained inflation and stable banking sector credit growth—has reinforced confidence that the BSP has room to manage policy support without triggering inflation pressure. Stable fundamentals tend to support the currency.