Manila: Concerns on the government's budget gap contributed to the negative close of the Philippine Stock Exchange index (PSEi) on Thursday, but the Philippine peso continues to stay firm against the U.S. dollar. A day after rising to the 6,000-level, the main stocks gauge fell 0.59 percent to 5,969.13 points, and the broader All Shares index decreased by 0.24 percent to 3,538.11 points.

According to Philippines News Agency, most of the sectoral indices also finished in the red, led by the Financials, which dipped 2.21 percent. It was trailed by the Services, which fell by 1.45 percent; Mining and Oil by 1.25 percent; Industrial by 0.84 percent; and Property by 0.08 percent. Only the Holding Firms bucked the trend, gaining 2.02 percent during the day.

The trading volume reached 1.31 billion, amounting to PHP5.58 billion. The market saw more decliners than advancers, with 110 stocks declining, 80 advancing, and 63 remaining unchanged. Philstocks Financials noted in a report that the local market dropped as investors digested the Philippine government's October budget position data, which showed a decline in both public revenues and expenditures.

On Wednesday, the Bureau of the Treasury reported a 1.13 percent rise in government revenues as of the end of October this year, totaling PHP3.81 trillion. However, expenditures for October alone decreased by 7.76 percent, partly due to the halt of some infrastructure programs amid an investigation into anomalous flood control projects.

In contrast to the stock market's performance, the Philippine peso ended the day's trading relatively stable against the U.S. dollar at 58.76, compared to the previous day's 58.84. It opened the day at 58.75 and traded within a range of 58.83 to 58.73, with an average of 58.79. The trading volume for the peso reached USD1.08 billion, an increase from the previous day's USD944 million.