Manila: The Philippine Stock Exchange index (PSEi) shed on Tuesday partly on anticipation of another cut in the Bangko Sentral ng Pilipinas' (BSP) key rates later this week, and the peso weakened against the US dollar. The main index declined by 2.17 percent to 6,145.24 points, and the broader All Shares by 1.42 percent to 3,684.55 points.

According to Philippines News Agency, most of the sectoral gauges also ended in the red, led by the Services after it slipped by 5.47 percent. It was trailed by the Financials, 3.03 percent; Holding Firms, 0.42 percent; Property, 0.26 percent; and Industrial, 0.11 percent. Only the Mining and Oil index rose during the day after it jumped by 1.05 percent. Volume reached 1.55 billion shares, amounting to PHP14.32 billion.

'The market saw a decline today as most stocks were weighed down by heavy selling pressure. Investors are positioning ahead of the BSP's policy rate decision this week, with all eyes on how the stock market will react once the central bank's move is confirmed,' Luis Limlingan, Regina Capital Development Corporation head of sales, said.

BSP's policy-making Monetary Board will have its fourth rate-setting meeting on Aug. 28, and it is widely expected to cut its key rates given the low inflation environment.

The peso also registered a weak performance during the day, ending the trade at 57.07 against the US dollar from its 56.95 on Friday last week. There was no trading on Monday, a holiday for National Heroes' Day. For the day, the local currency opened at 56.7 and traded between 56.65 and 57.07. Average level stood at 56.84. Volume reached USD1.4 billion, lower than the USD1.7 billion in the previous trading.