The Philippine stock market retreated on Tuesday, while the peso snapped its winning streak, as investors weighed a weaker domestic growth outlook against lingering geopolitical uncertainties.

The Philippine Stock Exchange index (PSEi) fell 1.57 percent, or 96.24 points, to close at 6,037.17.

The peso likewise weakened to P61.36 per US dollar from P61.17 in the previous session.

Investor sentiment was dampened after the Development Budget Coordination Committee lowered the country’s gross domestic product growth target to 3.5 to 4.5 percent this year from the 5 to 6 percent range set late last year, citing risks arising from the Middle East conflict.

Uncertainty

Uncertainty surrounding peace negotiations between the United States and Iran further encouraged investors to adopt a risk-off stance.

Foreign investors remained net sellers, posting net outflows of P342.22 million and adding pressure on local equities. Despite the cautious mood, net value turnover reached P6.45 billion.

All major sectors closed in negative territory, led by the banking sector, which declined 2.67 percent amid concerns over economic growth prospects and investor risk appetite.

Among index stocks, Century Pacific Food Inc. bucked the broader market weakness, rising 1.64 percent to P31.00, while DigiPlus Interactive Corp. posted the steepest decline, shedding 4.88 percent to P11.70.

The peso’s decline mirrored broader market sentiment, with the currency depreciating by 19 centavos, or roughly 0.31 percent, against the US dollar.

Renewed strength in the dollar

Traders attributed the move largely to renewed strength in the greenback as investors reassessed expectations for US interest rate cuts and continued to favor dollar-denominated assets. While tensions in the Middle East have eased following signs of de-escalation between the United States and Iran, concerns over potential disruptions to global trade and energy markets continued to support demand for the dollar.