Share prices edged lower Thursday, dragged by declines across all major sectors as investors cashed in on previous gains.
The benchmark Philippine Stock Exchange Index shed 47.54 points, or 0.78 percent, to close at 6,031.48 as foreign selling persisted. The broader All Shares Index slipped by 12.49 points, or 0.36 percent, to 3,446.96.
The peso closed stronger at 58.555 against the dollar Thursday, compared with 58.725 on Wednesday.
“The local market pulled back, taking cues from Wall Street’s overnight decline,” said Japhet Tantiangco, research head at Philstocks Financial Inc.
“Investors traded cautiously while waiting for U.S. November inflation data, which is expected to give clues on the Federal Reserve’s policy outlook,” he added.
All sectors ended in the red, led by property, which dropped 1.62 percent, while holding firms fell 0.92 percent.
Trading was anemic with net value turnover at P4.88 billion. Losers beat gainers 95 to 91.
Foreign investors were net sellers for the 15th straight trading day, with net outflows at P361.16 million.
Globe Telecom Inc. was the day’s top index gainer, up 2.62 percent to P1,604, while ACEN Corp. was the main index laggard, falling 4.84 percent to P2.75.
Most Asian markets sank Thursday after another sell-off on Wall Street as worries over the tech sector’s colossal spending on artificial intelligence continued to dog investor sentiment.
Hopes for an end-of-year rally have been dealt a blow after the Federal Reserve last week hinted that it could pause its interest rate cuts next month while more questions are being asked about the cash pumped into AI.
While the US central bank’s three successive rate reductions have provided a boost to equities in the back end of the year, some fear that support will be taken away.
Key US inflation data due later Thursday could provide some idea about officials’ plans after a jobs report Tuesday provided little clarity.
Focus is now back on the tech sector amid rising speculation that a bubble has formed and could be close to popping.
While software and chip firms have led a surge in markets to record highs this year, a growing number of investors are beginning to wonder whether their valuations have been stretched and are asking when the cash pumped into AI will start to see returns.
Those worries were compounded Wednesday by a report that private capital group Blue Owl had pulled out of market giant Oracle’s $10 billion data centre, putting the project in doubt.
That came after Oracle and chip giant Broadcom last week unveiled disappointing earnings reports.
Oracle plunged more than five percent Wednesday, while Broadcom and other sector heavyweights, including Nvidia, Alphabet and Advanced Micro Devices, also tumbled.
The Nasdaq on Wall Street dived 1.8 percent and the broader S&P 500 was off more than one percent.
Michael Hewson at CMC Markets said the “surge in valuations has… prompted fears of a bubble in the sector with some wild swings in recent weeks on the back of some end-of-year profit taking”.
He added that there was “some chatter that 2026 could prompt a bit of a reset when it comes to AI winners, and AI losers”.
Asian markets largely tracked the US losses.
Tokyo and Seoul — which have heavy tech presences — led losses, followed by Singapore, Wellington, Taipei, Manila, Bangkok and Jakarta.
However, Hong Kong, Shanghai and Mumbai rose while Sydney was flat.
European markets were mixed ahead of policy decisions by the Bank of England and European Central Bank.
London rose, Paris was flat and Frankfurt edged down.
Oil prices rose again after Washington said US forces carried out a strike on a vessel it said was engaged in drug trafficking in the Pacific Ocean, killing four “narco-terrorists”.
The move ramped up concerns about Donald Trump’s plans for Venezuela after he ordered a blockade of “sanctioned” oil tankers heading to and leaving the country.
The US president’s Venezuelan counterpart Nicolas Maduro claims the White House is seeking regime change instead of its stated goal of stopping drug trafficking.
