The Philippine Stock Exchange Index (PSEi) fell for a second straight session on Thursday, ending the shortened trading week down 31.30 points, or 0.53 percent, at 5,910.06, while the peso extended its recent recovery, strengthening to P61.35 per US dollar from Wednesday's P61.395 close.

Investors continued to monitor renewed military exchanges between the United States and Iran, while also assessing the implications of recent US inflation data and the strengthening of the local currency.

Market breadth remained negative, with 99 decliners against 75 advancers. Value turnover reached P6.65 billion across 77,031 trades.

Selling pressure was concentrated in interest rate-sensitive sectors. Financials led the decline, falling 1.39 percent, followed by Property (-1.04 percent) and Holding Firms (-0.76 percent). Among index heavyweights, BDO Unibank Inc. (BDO) dropped 3.57 percent to P116.30, Ayala Land Inc. fell 3.48 percent to P12.74, and Metropolitan Bank & Trust Co. declined 1.56 percent to P63.00. Universal Robina Corp. also weighed on the index, losing 5.25 percent to P55.90.

In contrast, the Services sector rose 0.44 percent, supported by gains in International Container Terminal Services Inc., which climbed 0.67 percent to P898.00, extending its recent rally. Ayala Corp. added 0.26 percent to P386.00, while Manila Electric Co. was unchanged at P574.00.

Mining & Oil edged up 0.007 percent after recent losses.

Peso firms up

Meanwhile, the peso strengthened to P61.35 per US dollar from Wednesday's P61.395 close, extending its recovery from Monday's P61.69 finish.

The local currency traded within a range of P61.17 to P61.43 during the session. The weighted average rate improved to P61.326 from P61.497 previously, while dollar trading volume increased to US$2.27 billion from US$1.69 billion.

Easing concerns over M.E. oil supply disruptions

 The peso's strength came as foreign exchange markets remained supported by easing concerns over potential disruptions to Middle East oil supplies and a softer US dollar environment across parts of Asia. 

Traders also continued to assess the latest US inflation data and its implications for future Federal Reserve policy, while lower fears of an immediate energy supply shock helped support oil-importing currencies such as the peso.