The Philippine Stock Exchange index (PSEi) plunged 102.73 points, or 1.72 percent, to 5,855.91 Friday, while the peso weakened 1.5 centavos, or 0.02 percent, to P62.745 per US dollar as rising Philippine Treasury yields and the Federal Reserve’s latest rate hike weighed on investor sentiment.

The decline erased Thursday’s 0.70-percent rebound and pushed the benchmark further below the 6,000 level. Trading remained active, with net value turnover reaching P15.10 billion, well above the recent average.

The selloff was broad-based, with Mining & Oil the only sector to advance, gaining 1.65 percent. Services fell 2.53 percent, Holding Firms lost 2.45 percent, Financials declined 0.53 percent and Property shed 1.55 percent.

ACEN Corp. jumped 9.13 percent to P2.87, making it the strongest index constituent, while Semirara Mining and Power Corp. dropped 10.42 percent to P17.96 after surging 20.06 percent Thursday.

The main domestic pressure point was the rise in Philippine government bond yields. The 10-year yield stood at around 7.50 percent Friday after reaching 7.58 percent on 16 September.

AsianBondsOnline put the yield at 7.615 percent on 16 September, up 29 basis points from the previous week and more than 150 basis points higher year-to-date.

Higher yields increase the relative attractiveness of government securities and raise the required return on equities.

Global rate backdrop adds pressure

The global rate backdrop added pressure. The Federal Reserve raised its policy rate by 25 basis points to 3.75 percent to 4 percent Wednesday, its first increase since 2023, and signaled another possible hike before year-end.