Market breaks seven-day streak as peso remains steady

The Philippine Stock Exchange index (PSEi) closed Friday at 6,611.24, down 0.21 percent, snapping a seven-day winning streak as investors booked profits following the market’s recent climb.

Sentiment was also tempered by lingering geopolitical uncertainty after talks between the United States and Iran failed to produce a breakthrough, keeping global risk appetite somewhat cautious.

Trading remained robust

Despite the pullback, trading activity remained robust with net value turnover reaching P13.18 billion, while foreign investors were still net buyers with P915.72 million in inflows, helping limit the decline.

Sector performance was largely negative. Only holding firms managed to post gains, rising 0.87 percent, while the rest of the sectors finished in the red. Property stocks led the losses, dropping 1.52 percent, as investors trimmed positions following recent advances. Market breadth was negative, with decliners outnumbering advancers 99 to 85.

AEV day’s top gainer

Among index members, Aboitiz Equity Ventures (AEV) emerged as the day’s top gainer, climbing 4.43 percent to P34.20, supported by bargain hunting and renewed interest in conglomerates tied to power, infrastructure, and economic growth expectations.

On the other hand, AREIT was the session’s biggest laggard, falling 3.22 percent to P42.05, as investors rotated out of REITs amid shifting interest-rate expectations and profit-taking after the sector’s earlier stability.

Peso slumped a bit as US dollar regained some ground

Meanwhile, the peso weakened slightly to P57.66 per dollar, from P57.60 the previous day, as the US dollar regained some ground in global markets. The greenback firmed after US Treasury yields edged higher and investors reassessed the Federal Reserve’s policy path following resilient US economic data reported in international financial media such as Bloomberg and Reuters.

Safe-haven demand for the dollar was also supported by geopolitical tensions surrounding the stalled US-Iran discussions, which kept energy markets and risk sentiment on edge. As a result, emerging-market currencies including the peso gave back part of their recent gains even as the local currency remained relatively strong compared with levels earlier in the year.