Manila:Investors showed weak appetite on Monday due to risks from the economic outlook and potential hikes in the Bangko Sentral ng Pilipinas' (BSP) interest rates, causing further declines in the local bourse's main index and the Philippine peso.

According to Philippines News Agency, the Philippine Stock Exchange index (PSEi) dropped 1.53 percent to 5,641.18 points, while the broader All Shares index fell by 1.01 percent to 3,161.12 points. All sectoral indices experienced losses, with the Holding Firms sector leading the decline at 2.37 percent, followed by Mining and Oil at 2.26 percent, Financials at 1.81 percent, Services at 1.40 percent, Industrial at 0.43 percent, and Property at 0.40 percent.

The volume of shares traded reached 38.27 billion, amounting to PHP5.91 billion. Decliners outnumbered advancers at 106 to 61, with 78 shares remaining unchanged. A report from Philstocks Research highlighted that the local market's decline is linked to a gloomy economic outlook, sluggish public infrastructure spending, elevated inflation, and the possibility of further BSP rate hikes. The peso's ongoing depreciation to record lows has also negatively impacted the market.

The peso closed at 63.95 to the dollar, depreciating from last week's close of 63.61. It opened at 63.53, down from 63.35 in the previous session, trading between 63.95 and 63.5, with an average of 63.85 for the day. The trading volume increased to USD1.65 billion, compared to USD1.28 billion at the end of the previous week.