The benchmark index fizzled out to end the trading week on Friday, dipping to 6,384.58, down 1.3 percent, as investors continued to lock in gains following the midweek rally.

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

Negative cues from Wall Street persisted, with American investors likewise locking in profits after the Dow Jones Industrial Average reached the psychological 50,000 milestone.

Investor caution

Upcoming US inflation data also contributed to investor caution, as US inflation trends serve as a key signal for the Federal Reserve’s monetary policy decisions — factors that the BSP typically considers in its own policy deliberations.

Foreign investors remained net sellers for the second consecutive trading day, with net outflows reaching P451.64 million.

Trading activity remained relatively active, with net value turnover at P6.69 billion, higher than the year-to-date average of P6.42 billion.

All sectors in negative territory

All sectors finished in negative territory, led by mining and oil, which slid 3.34 percent. Services followed closely, falling 3.01 percent. Market breadth was negative, with decliners outnumbering advancers, 115 to 74.

Among blue-chip stocks, Semirara Mining and Power Corp. (SCC) gained 2.95 percent to P33.20 per share. SCC continues to benefit from strong coal prices and robust power-generation earnings, supporting high dividend payouts that investors view as a consistent source of value and stability.

Meanwhile, Thursday’s top performer, International Container Terminal Services Inc., reversed course on Friday, finishing as the biggest decliner, dropping 4.50 percent to P658 per share.

Peso extends rally

While the local bourse ended the week in negative territory, the Philippine peso extended its rally, settling at P58.02 per US dollar on Friday, strengthening from Thursday’s P58.11 close and inching closer to the P57-per-dollar psychological mark.

Recent global foreign exchange 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.