Manila: Acceleration of the United States' inflation rate for June 2025 added to investors' concerns, resulting in the negative close of both the Philippine Stock Exchange index (PSEi) and the peso on Wednesday. The main stocks gauge shed 1.89 percent to 6,337.48 points, and the broader All Shares is down 1.55 percent to 3,748.25 points.

According to Philippines News Agency, Mining and Oil registered the biggest drop at 2.65 percent and was trailed by the Holding Firms at 2.51 percent, Property at 2.28 percent, Financials at 1.80 percent, Services at 1.69 percent, and Industrial at 1.53 percent. Volume reached 3.43 billion shares amounting to PHP20.78 billion. Decliners led advancers at 122 to 67 while 59 shares were unchanged.

Luis Limlingan, Regina Capital Development Corporation head of sales, stated that Philippine shares succumbed to profit-taking as investors digested hotter-than-expected June inflation data. The US consumer price index posted a 0.3 percent uptick in June, with the annual rate at 2.7 percent. Core inflation rose 0.2 percent to 2.9 percent. Aside from the inflation development, Limlingan mentioned that investors decided to stay at the sidelines due to the tariff decision of the Trump government.

Also affected by these developments is the local currency, which depreciated to 57.085 to a greenback, from its 56.73 close on Tuesday. It showed weakness early on when it opened the trade at 56.85 from 56.7 a day ago. The peso ranged between 57.095 and 56.85, bringing the day's average to 56.98. Volume reached USD1.58 billion, up from USD1.28 billion in the previous session.