The benchmark Philippine Stock Exchange Index (PSEi) resumed its decline, slumping to 5,833.64 (-1.26 percent) as investors ended the shortened trading week in a risk-off mood, while the peso posted marginal gains.

Sentiment was weighed down by a confluence of macroeconomic headwinds: a divided outlook from the Federal Reserve, surging global oil prices, continued peso weakness, and softer domestic growth.

The Fed opted to keep interest rates steady, signaling potentially tighter global financial conditions.

April inflation projected at 5.6 to 6.4 percent

Meanwhile, the Bangko Sentral ng Pilipinas (BSP) projected April inflation at 5.6 to 6.4 percent — implying a month-on-month increase of at least 1.5 percentage points — pointing to accelerating price pressures.

The peso remained near record lows, closing the week at the P61 level, further dampening sentiment.

Turnover reached P6.65 billion, slightly above the year-to-date average, as investors locked in gains following the previous session’s rally. Foreign investors turned net sellers, posting P538 million in outflows, underscoring persistent capital flight.

Sectors in the red

All sectors closed in the red, with mining stocks leading losses (-2.83 percent). Among blue chips, Aboitiz Equity Ventures bucked the trend, supported by strong first-quarter earnings of P6.3 billion — nearly double the same period last year.

On the currency side, the peso strengthened slightly to P61.48 per US dollar from P61.56 previously, though it remained near record lows.

The broader trend continues to reflect depreciation pressures, with the currency hovering above P61 amid a strong US dollar and elevated global risk aversion.

Peso pressured by global factors

Over the past 24 hours and week, the peso has been pressured by global factors. The US dollar climbed to multi-week highs after the Federal Reserve held rates steady while signaling persistent inflation risks, reducing expectations of near-term rate cuts.

At the same time, oil prices surged to near $120 per barrel, driven by escalating tensions and the continued blockade of the Strait of Hormuz, raising global inflation expectations. US President Donald Trump has also signaled a willingness to extend the blockade, adding to market uncertainty.