Manila: The Philippine Stock Exchange index slipped on Tuesday, driven partly by inflation surging to 7.2 percent in April, while the peso closed almost unchanged against the U.S. dollar. After starting the week on a positive note, the local bourse's main index shed 0.74 percent to 5,898.08 points, and the broader All Shares by 0.36 percent to 3,337.40 points.

According to Philippines News Agency, most of the sectoral gauges also ended the day in the red, led by Mining and Oil, which fell 2.07 percent. It was followed by Financials, 1.75 percent; Holding Firms, 0.70 percent; and Services, 0.67 percent. On the other hand, Property rose 0.19 percent and Industrial, 0.11 percent. Volume was thin at 959.55 million shares amounting to a little over PHP5 billion. Decliners led advancers at 106 to 77, while 63 shares were unchanged.

Earlier in the day, the Philippine Statistics Authority (PSA) reported that inflation rose to 7.2 percent in April 2026 from 4.1 percent in the previous month, driven primarily by soaring food and fuel costs amid the Middle East crisis. 'Worries over reignited tension in the Middle East following latest developments with the US sinking Iranian boat in the Strait of Hormuz, and Iran reportedly attacking the UAE (United Arab Emirates) also dampened market sentiment,' Philstocks Financial Inc. said in a market report.

Meanwhile, the local currency ended the day at 61.55 to a greenback from its 61.56 in the previous session. Rizal Commercial Banking Corporation chief economist Michael Ricafort attributed the peso's nearly flat close to Malaca±ang's statement that the Bangko Sentral ng Pilipinas (BSP) has the mandate to stabilize the local currency and address excessive foreign exchange volatility. The peso opened the day weaker at 61.69 from the previous session's 61.42. It traded between 61.74 and 61.55, resulting in an average of 61.67. Volume reached almost USD1.2 billion, down from the previous day's USD1.22 billion.