Manila: Weakening prospects for peace talks between the United States and Iran weighed on investor sentiment, pulling down both the Philippine Stock Exchange index (PSEi) and the peso on Tuesday. After opening the week on a positive note, the local bourse's main index slipped 0.25 percent to 5,971.98 points, while the broader All Shares index declined 0.34 percent to 3,376.99 points.

According to Philippines News Agency, half of the sectoral indices managed to post gains, led by Mining and Oil, which rose 2.09 percent, followed by Financials at 0.68 percent and Services at 0.24 percent. Meanwhile, Industrial dropped 1.56 percent, Property fell 1.39 percent, and Holding Firms eased 0.10 percent. Market turnover reached 1.22 billion shares worth PHP9.44 billion. Decliners outnumbered advancers, 107 to 78, while 62 issues were unchanged.

Philstocks Financial, Inc. attributed the market's weakness to renewed geopolitical concerns after reports on stalled US-Iran peace efforts, including remarks from US President Donald Trump describing Iran's calls for de-escalation as 'garbage,' amid continued conflict involving US ally Israel and Iran-backed Hezbollah in Lebanon. The brokerage also cited a spike in global oil prices and further weakening of the Philippine peso. The peso closed at 61.48 against the US dollar, weaker than Monday's 61.15 finish. It opened at 61.25, down from the previous session's 60.65, and traded between 61.25 and 61.49, with an average of 61.41. Dollar trading volume reached USD1.51 billion, broadly steady compared to the previous session.