The Philippine Stock Exchange Index (PSEi) continued its decline on Thursday, slipping 0.1 percent or 5.75 points to close at 5,983.81, as the Bangko Sentral ng Pilipinas' (BSP) shift to a hawkish stance and lingering geopolitical tensions in the Middle East dampened investor appetite.
The broader market struggled to regain footing after the central bank's recent rate hike signaled a more aggressive approach to curbing inflation, raising concerns about slower economic growth. Meanwhile, the prolonged conflict in the Middle East added to global uncertainties, keeping risk sentiment subdued.
"The market is reacting to a combination of domestic monetary tightening and external headwinds, which is pushing the index below key support levels," said a local trader.
The PSEi's dip below the psychologically important 6,000 mark underscores the challenges facing the Philippine market as it navigates a complex environment of rising interest rates and geopolitical instability.