MANILA, Philippines – Local stocks closed lower Friday after the Bangko Sentral ng PIlipinas raised its inflation…

MANILA, Philippines – Local stocks closed lower Friday after the Bangko Sentral ng PIlipinas raised its inflation forecasts, fueling concerns that interest rates may stay elevated longer.

The benchmark Philippine Stock Exchange Index (PSEi) slipped 0.30 percent, or 18.31 points, to close at 6,135.35.

READ: BSP hikes policy rate by 25 bps to 4.75%

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Investors turned cautious after the BSP raised its inflation forecasts for 2026 and 2027, fueling concerns about further policy tightening, brokerage Philstocks Financial Inc. said.

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Adding to uncertainty were concerns that the US-Iran memorandum of understanding could unravel and reignite 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,” Luis Limlingan, head of sales at Regina Capital Development Corp., said.

Solid trading

Despite the decline, trading activity remained active. Net value turnover reached P10.71 billion, while foreign investors remained net sellers with P451.99 million in net outlfows.

Sectoral performance was broadly negative, with only the banking index ending in positive territory. Banks rose 0.75 percent, bucking the market’s downtrend.

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The rest of the sectors finished in the red, led by mining and oil, which dropped 3.76 percent.

Among index members, RL Commercial REIT Inc. emerged as the session’s top performer, climbing 3.77 percent to P7.15.

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Meanwhile, ACEN Corp. posted the steepest decline among blue-chip stocks, falling 3.53 percent to P3.01.

The market retreated after a strong rally earlier in the week as investors reassessed inflation , interest rates, and global risks.

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Analysts said higher inflation forecasts and lingering uncertainty overseas prompted investors to lock in gains despite trading volumes remaining robust. /pai INQ