Manila: Developments both in the local front and in the Middle East continue to worry investors, resulting in the negative close of both the local bourse's main index and the peso on Thursday. The Philippine Stock Exchange index (PSEi) shed 1.73 percent to 5,859.94 points, and the broader All Shares by 1.37 percent to 3,307.95 points.

According to Philippines News Agency, all the sectoral counters also finished in the negative territory, led by Holding Firms after it fell 2.62 percent. It was trailed by Mining and Oil, which dropped by 2.44 percent; Financials, down by 1.94 percent; Services, decreasing by 1.42 percent; Property, which slipped by 1.21 percent; and Industrial, falling by 0.69 percent. Volume was thin at 718.2 million shares amounting to PHP5.65 billion, with losers outnumbering gainers at 128 to 61, while 51 shares remained unchanged.

The local currency also weakened during the day, ending the trade at 61.59 against its 61.56 close on Tuesday. There was no trading on Wednesday due to the observance of Islamic holiday Eid'l Adha (Feast of Sacrifice). During the day, the local unit opened at 61.56 and traded between 61.55 and 61.71, with the average for the day standing at 61.65. Volume reached 1.11 billion, down from the previous session's USD1.67 billion.

Rizal Commercial Banking Corporation chief economist Michael Ricafort pointed out that the weakening of the peso affected the PSEi, and this was traced partly to the jump in global oil prices and concerns on both the local and international developments, particularly the current situation in the Middle East. He noted that the peso's weakness was partly offset by expectations for a hike in the Bangko Sentral ng Pilipinas' key rates, following monetary officials' signal for the need to stabilize inflation expectations.