The Philippine Stock Exchange Index (PSEi) reversed sharply yesterday by 134.85 points, or 2.20 percent, closing at 5,991.37, while the peso weakened further to P61.552 per US dollar from P61.351 previously.

Investor sentiment deteriorated as renewed selling pressure hit several index heavyweights, most notably International Container Terminal Services Inc. (ICT), which fell 5.97 percent and accounted for a significant portion of the benchmark’s decline. |

Concerns that the peso’s continued depreciation could fuel imported inflation and complicate the domestic economic outlook also weighed on sentiment.

Trading subdued

Trading activity remained subdued, with value turnover reaching P5.77 billion, below the year-to-date average of roughly P6.47 billion, suggesting investors remained reluctant to take on significant risk despite recent market volatility.

Sector performance reflected the cautious mood. Property was the lone gainer, rising 0.53 percent, while all other major sectors ended in negative territory.

Services posted the steepest decline, falling 4.22 percent, largely due to weakness in ICT and other transport- and logistics-related stocks.

Despite the broader selloff, Ayala Land Inc. emerged as the top index contributor, climbing 5.11 percent to P14.80 as investors rotated into selected property counters perceived to offer value after months of underperformance.

Market breadth remained weak, underscoring that the decline was broad-based rather than confined to a handful of stocks.

Peso extends slide

In the foreign exchange market, the peso extended its slide, closing at P61.552 per US dollar from P61.351 on 23 June, representing a depreciation of 20.1 centavos, or 0.33 percent.

The currency traded between P61.35 and P61.63 during the session, while total spot-market turnover reached approximately US$1.76 billion. The weighted average rate rose to P61.558 from P61.355 the previous day, highlighting persistent demand for dollars.

The peso has now weakened by roughly 78 centavos from last Friday’s close of P60.775, marking a significant move over just three trading sessions.

The currency’s decline was driven largely by continued demand for the US dollar despite signs of easing military tensions in the Middle East.

While reports of a fragile ceasefire framework between Iran and Israel initially improved risk sentiment, currency traders remained focused on the possibility of renewed disruptions to regional energy supplies and shipping routes.