THE peso posted its strongest close in over four months on Friday with sentiment said to have improved, but the stock market fell for a second straight day as investors chose to take profits.
The currency closed at P58.02:$1, strengthening by 9.5 centavos to its strongest showing since the P57.95 on Oct. 8, 2025.
The benchmark Philippine Stock Exchange index (PSEi), meanwhile, shed 86.67 points — down 1. 34 percent — to 6,384.58, while the broader All Shares lost 33.96 points, or 0.94 percent, and ended the week at 3,560.26.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso strengthened after an improvement in approved foreign investments, suggesting improved sentiment amid an ongoing investigation into alleged corruption in government flood control projects.
The peso-dollar trade was also better for the fourth straight week, he added.
As for the PSEi, Ricafort described Friday’s decline as “healthy profit-taking” correction following two two straight trading days of gains to multi-month highs.
Despite the pullback, he said the bourse remained at its strongest levels in nearly six and a half months and had already erased losses recorded after the July 28, 2025 State of the Nation Address.
The local market was also said to have tracked Wall Street’s overnight weakness, with US stocks retreating to one-week lows amid concerns over potential artificial intelligence-related disruptions.
Japhet Tantiangco, research analyst at Philstocks Financial Inc., said investors remained cautious while awaiting fresh catalysts, particularly US January inflation data that could provide clues on the Federal Reserve’s policy direction.
He added that the index’s recent movement suggests consolidation near resistance levels after its strong climb in the past weeks.
Among index members, Semirara Mining and Power Corp. was the top gainer, rising 2.95 percent to P33.20, while International Container Terminal Services Inc. was the worst performer, declining 4.50 percent to P658.00.
Trading was relatively active, with net value turnover reaching P6.69 billion, higher than the year-to-date average of P6.42 billion.
Foreign investors were net sellers, registering net outflows of P451.64 million. Decliners outpaced advancers, 115 to 74, while all sectoral indices ended in the red, led by mining and oil which dropped 3.34 percent.