The Philippine Stock Exchange Index (PSEi) snapped its six-day winning streak on Thursday, falling 51.90 points, or 0.83 percent, to 6,223.87, while the peso weakened by 10 centavos to P61.605 per US dollar from P61.505 previously.

Profit-taking and renewed geopolitical concerns weighed on sentiment, with US President Donald Trump describing the ceasefire between the US and Iran as effectively “over” as the two nations once again traded strikes.

Banking stocks led decline

Banking stocks led the decline as the financials index dropped 2.14 percent. Conglomerates, property and industrial shares also retreated. The services sector was the lone gainer, rising 0.85 percent on continued strength in International Container Terminal Services Inc., which climbed 2.26 percent to P971.50.

Value turnover reached P5.91 billion, while foreign investors remained net buyers, posting net inflows of P799.16 million.

However, reports of renewed tensions between the United States and Iran, coupled with lower growth forecasts for the Philippines from international institutions, prompted investors to reduce risk exposure following the market’s recent rally.

Peso under pressure

In the foreign exchange market, the peso came under pressure from stronger demand for the US dollar amid heightened global risk aversion. The currency traded within a P61.53-P61.64 range and posted a weighted average rate of P61.583.

Safe-haven demand for the dollar increased following reports that the US and Iran exchanged strikes once again. Persistent importer demand and concerns that elevated oil prices could increase the country’s import bill further supported dollar demand.