Philippine stocks closed lower on Friday as the Bangko Sentral ng Pilipinas' (BSP) upward revision of inflation forecasts fueled concerns that interest rates could remain elevated for longer.
The benchmark Philippine Stock Exchange Index (PSEi) fell 0.30 percent, or 18.31 points, to finish at 6,135.35.
Investor sentiment turned cautious after the BSP raised its inflation projections for 2026 and 2027, raising the possibility of further policy tightening, according to Philstocks Financial Inc.
Adding to the uncertainty were worries that the US-Iran memorandum of understanding might collapse, reigniting geopolitical tensions.
"Selective selling was also seen in the market today after the FTSE Global Equity Index rebalancing. Furthermore, sentiment was further dampened by delays in peace talks in Switzerland between the US and Iran," said Luis Limlingan, head of sales at Regina Capital Development Corp.
Despite the decline, trading activity remained robust, with net value turnover reaching P10.71 billion. Foreign investors were net sellers, with net outflows of P451.99 million.
Sectoral performance was broadly negative, with only the banking index managing to close in positive territory, rising 0.75 percent. Mining and oil led the losers, dropping 3.76 percent.
Among index members, RL Commercial REIT Inc. was the top performer, climbing 3.77 percent to P7.15. ACEN Corp. posted the steepest decline among blue-chip stocks, falling 3.53 percent to P3.01.
The market pulled back after a strong rally earlier in the week as investors reassessed inflation, interest rates, and global risks. Analysts said higher inflation forecasts and lingering overseas uncertainty prompted profit-taking despite healthy trading volumes.