Manila: The local stock market closed lower on Wednesday as heightened geopolitical tensions dampened market sentiment, while the peso strengthened against the U.S. dollar. The Philippine Stock Exchange index (PSEi) declined by 0.07 percent to 5,941.36, while the broader All Shares index fell by 0.62 percent to 3,304.51. Two sectoral indices posted gains: Services, which rose by 1.45 percent, and Financials, which increased by 0.84 percent.

According to Philippines News Agency, the remaining indices ended in the red, led by Mining and Oil, which dropped by 5.89 percent, followed by Holding Firms, plunging 2.72 percent; Industrial, 1.09 percent; and Property, 0.55 percent. "The Philippine market ended lower as investors shifted to the selling side following renewed attacks in the Middle East. Heightened geopolitical tensions dampened risk appetite and triggered across the market," Luis Limlingan, Regina Capital Development Corp. head of sales, said. "As a result, sentiment turned cautious, weighing on overall market performance," he added.

The Philippine market closed with 49 gainers, 133 decliners, and 57 unchanged issues. Meanwhile, the peso closed at 61.40 against the US dollar on Wednesday, improving from 61.50 in the previous session. The local currency opened at 61.50 and traded within a range of 61.40 to 61.60 throughout the day. Its average exchange rate stood at 61.50. Volume of trade increased to USD1.7 billion from USD1.5 billion on Tuesday.