THE peso slipped and the stock market also closed lower on Tuesday with analysts noting worries over the direction of interest rates and Red Sea tensions.
The currency weakened by 6 centavos to P55.83 against the dollar, while the benchmark Philippine Stock Exchange index (PSEi) shed 43.45 points, or 0.65 percent, to 6,637.00.
The broader All Shares ended 0.5 percent, or 17.54 points, lower at 3,506.23.
The peso opened at P55.85:$1 and ranged from P55.795 to P55.99. Volume hit P1.616 billion, higher than the P1.305 billion recorded in the previous session.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said an upward correction in the dollar due to attacks on ships plying the Red Sea was a factor.
He added that the peso also fell "after hawkish signals from some European Central Bank officials lately."
Philstocks Financial Inc. researcher Mikhail Plopenio, meanwhile, said the PSEi closed lower as "investors took profits after a three-day rally."
"The tension in the Red Sea is also being monitored by many, as this poses an upside risk to oil prices," he added.
"This comes amid reports that oil tankers are avoiding the said area amid the turmoil between the US forces and the Houthis."
Regina Capital Development Corp. Managing Director Luis Limlingan echoed this, saying traders were looking at the "potential risk of supply disruptions in the Middle East."
"The concern arose from strikes carried out by US and British forces aimed at preventing Houthi militias in Yemen from attacking ships in the Red Sea," he added.
Limlingan said the PSEi also slipped as "fears of the Chinese property market kept investors on the sidelines while others awaited a slew of corporate earnings."
Net market value turnover stood at P4.91 billion on Tuesday, higher than the year-to-date average of P4.39 billion.
Foreigners were net buyers, recording a net inflow amounting to P461.18 million.
All sector indices ended in the red, with mining and oil dropping the most by 1.45 percent.
Decliners overwhelmed advancers, 114 against 67, while 58 were unchanged.
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