Manila: Investors stayed on the sidelines Thursday, a day before the release of the second-quarter domestic output, resulting in the negative close of both the Philippine Stock Exchange index (PSEi) and the Philippine peso. The local bourse's main index shed 0.13 percent to 6,277.95 points, but the broader All Shares rose 0.02 percent to 3,414.45 points.

According to Philippines News Agency, half of the sectoral gauges improved - Industrial, by 0.97 percent; Mining and Oil, by 0.59 percent; and Property, by 0.07 percent. On the other hand, Services, Holding Firms, and Financials trailed the main index after these contracted by 0.44 percent, 0.38 percent, and 33 percent, respectively. Volume was thin at 562.64 million shares, amounting to PHP6.2 billion. Advancers led decliners at 97 to 96, while 57 shares were unchanged.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort, in a market report, cited the possible soft domestic output from April to June partly on 'risk of government underspending, especially on infrastructure spending since the latter part of 2025 due to the anomalous flood control project.' Growth, as measured by gross domestic product (GDP), was maintained at 2.8 percent for the first three months this year, slower than the 3 percent in the previous three months and the 5.37 percent in the same period last year.

With investors on a wait-and-see stance, the local currency also weakened against the US dollar, ending the day at 60.81, from 60.75 on Wednesday. It opened the day at 60.68, better than its 60.99 start in the previous session, and traded between 60.83 and 60.58. The day's average stood at 60.70. Volume went down to USD2.04 billion from USD2.17 billion.