The Philippine Stock Exchange Index (PSEi) traded lower at midday Thursday, falling 37.06 points, or 0.62 percent, to 5,904.30 as investors locked in gains following the market’s recent advance, while the peso continued to strengthen to an AM weighted average of P61.34, up from yesterday's P61.39 close.

Market breadth remained negative, with 105 decliners against 51 advancers, while value turnover reached P3.53 billion by noon.

Selling pressure was concentrated in interest rate-sensitive sectors, with Property declining 1.13 percent and Financials falling 1.12 percent. Among major index stocks, Ayala Land dropped 3.18 percent to P12.78, BDO Unibank fell 2.40 percent to P117.70, Metropolitan Bank declined 1.41 percent to P63.10, and Synergy Grid slipped 2.48 percent to P29.45.

The Services sector was the lone gainer, inching up 0.002 percent, supported by International Container Terminal Services, which rose 0.17 percent to P893.50, and DigiPlus Interactive, which advanced 1.87 percent to P10.90.

Meanwhile, the peso continued to strengthen, with the Bankers Association of the Philippines weighted average improving to P61.343 per dollar from Wednesday’s P61.497. The local currency traded between P61.21 and P61.43, while dollar trading volume increased to $1.08 billion from $728.5 million previously.

The peso benefited from sustained inflows and the absence of major disruptions to global energy supplies, although equity investors remained cautious amid lingering geopolitical tensions and profit-taking in banking and property stocks.