Manila: The peso recovered slightly against the U.S. dollar on Wednesday, while the Philippine Stock Exchange index (PSEi) slipped amid negative cues from Wall Street.

According to Philippines News Agency, the local currency strengthened to 61.74 against the US dollar from Tuesday's close of 61.75. It opened weaker at 61.73, compared to the previous session's opening of 61.60. During the day, the peso traded between 61.67 and 61.75, averaging 61.72. Trading volume increased to USD1.54 billion from USD1.21 billion the previous day.

Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the peso's appreciation partly to possible intervention by the Bangko Sentral ng Pilipinas (BSP) to temper volatility, expectations of another increase in the central bank's policy rates, and the recent decline in global oil prices.

Meanwhile, the local bourse ended lower, with the benchmark PSEi shedding 0.06 percent to 5,893.40 points. The broader All Shares index also declined by 0.23 percent to 3,339.88 points. Three of the six sectoral indices posted gains, led by Services, up 0.33 percent; Property, 0.18 percent; and Holding Firms, 0.09 percent.

On the other hand, Industrial stocks led the decliners with a 0.79-percent drop, followed by Financials, down 0.56 percent; and Mining and Oil, down 0.33 percent. Trading volume reached 1.24 billion shares valued at PHP5.7 billion. Decliners outnumbered advancers, 111 to 74, while 59 stocks were unchanged.

Philstocks Financial Inc. commented in a market report that 'the local market's sideways movement ended in the negative territory, taking cues from Wall Street's overnight decline. This comes following the rise in the US long-term treasury yields.' The report also noted that 'lingering concerns including the elevated global oil prices, weak local currency, and stagflation risks also weighed on investors' sentiment.'