The Philippine Stock Exchange index (PSEi) dropped on Thursday, snapping its six-day winning run as investors turned cautious over renewed tensions in the Middle East and weakening economic prospects. The index fell by 0.82% or 51.90 points to close at 6,223.87.
The broader all shares index also declined, dropping by 1.01% or 34.59 points to end at 3,370.56. Investors booked gains after six days of rallying, with the local market pulling back in response to renewed tensions between the US and Iran.
The US military launched fresh strikes on Iran to keep the Strait of Hormuz open to shipping, triggering Iranian attacks on Kuwait and Bahrain in the latest escalation to derail efforts to end the war. The latest round of attacks dimmed hopes of turning a memorandum of understanding signed on June 17 into a permanent deal to end the war, which began with US-Israeli attacks on Iran on February 28.
The downgrade in the International Monetary Fund's (IMF) Philippine economic growth projections for 2026 also dampened sentiment. The IMF trimmed its 2026 gross domestic product (GDP) growth forecast for the Philippines to 3.9% from 4.1% previously, which is still within the government's 3.5%-4.5% target.
The Asian Development Bank also lowered its GDP growth forecast to 3.8% from 4.4% previously, further contributing to the market's decline. Major sectoral indices closed in the red on Thursday, with financials, holding firms, industrials, mining and oil, and property all experiencing losses.
However, the services sector rose by 0.85% or 28.65 points to 3,394.48, with only four index members closing in positive territory. International Container Terminal Services, Inc. led the gainers, climbing 2.26% to P971.50, while Ayala Corp. was the main index laggard, falling 3.51% to P468.
Value turnover rose to P6.19 billion on Thursday, with 1.49 billion shares traded. Net foreign buying increased to P799.16 million from P789.03 million.
