Manila: Philippine shares closed lower on the last trading day of the week as investor sentiment weakened amid escalating tensions in Iran while the peso traded sideways against the US dollar. The Philippine Stock Exchange index (PSEi) declined by 0.53 percent to 5,910.06, while the broader All Shares index fell 0.44 percent to 3,289.95.

According to Philippines News Agency, Mining and Oil and Services were the only sectoral indices to finish in positive territory, gaining 0.007 percent and 0.44 percent, respectively. Financials posted the biggest decline at 1.39 percent, followed by Property at 1.04 percent, Holding Firms at 0.76 percent, and Industrial at 0.35 percent.

"The local bourse closed in the red as continued attacks in Iran stoked fear and dampened investor sentiment, dragging the index lower," Regina Capital Development Corp. head of sales Luis Limlingan said. "Surging oil prices on heightened geopolitical tensions raised concerns about inflation and economic headwinds," he added. Limlingan said these developments fueled concerns that the Bangko Sentral ng Pilipinas could face pressure to raise interest rates to contain inflation risks.

The market ended with 75 gainers, 99 decliners, and 59 unchanged. Meanwhile, the peso moved sideways, closing at 61.35 against the U.S. dollar from 61.39 in the previous session. The local currency opened at 61.35 and traded within a range of 61.17 to 61.43, bringing the day's average to 61.32. The volume of trade rose to USD2.27 billion from USD1.69 billion a day earlier. There will be no trading on Friday, Independence Day, a national holiday.