The Philippine Stock Exchange Index (PSEi) fell 68.61 points, or 1.10 percent, to 6,236.44 to end the week as the peso strengthened sharply by 32 centavos to P61.24 against the US dollar from Thursday’s P61.56.

The local bourse ended the week on a weaker note as investors adopted a risk-off stance amid mounting domestic and global uncertainties.

Sentiment dampened

Sentiment was dampened by data showing the government’s outstanding debt reached a record P19.07 trillion, while lingering concerns over the US-Iran conflict and caution ahead of next week’s key domestic economic releases — including July inflation, the June Labor Force Survey and second-quarter GDP — weighed on trading.

Despite the broader apprehension, turnover remained healthy at P9.55 billion, although foreign investors turned net sellers with P1.04 billion in net outflows.

Sector performance was mixed, with Mining and Oil leading gains at 4.05 percent as higher commodity prices and geopolitical tensions supported resource-related stocks. Services posted the steepest decline, falling 1.57 percent.

Converge ICT Solutions emerged as the top-performing index stock on bargain hunting, while JG Summit Holdings led the decliners amid broad-based selling in conglomerates.

Peso posts one of its strongest closes

On the other hand, the peso posted one of its strongest closes of the month as the US dollar weakened following softer US economic data and rising expectations that the Federal Reserve could begin easing monetary policy later this year.

Reduced safe-haven demand for the greenback amid easing Middle East tensions and improved domestic foreign exchange liquidity also supported the local currency, offsetting the impact of foreign equity outflows.