The PSEi declined as investors exercised caution while waiting for developments in the US.

The main index dropped 43.14 points or 0.63 percent to close at 6,806.86 as the Services sector led the retreat with only Banks managing to advance. Volume fell to 588 million shares worth P4.6 billion as losers outnumbered gainers 110 to 82 with 43 unchanged.

“The PSEi dipped amid sustained net foreign selling and below average value turnover ahead of the October print of the US Personal Consumption Expenditures Price Index, the preferred inflation gauge of the Federal Reserve,” said Chinabank Capital Corporation Managing Director Juan Paolo Colet.

Regina Capital Development Corporation Managing Director Luis Limlingan said, “Philippine shares closed in the red with investors staying on the sidelines as incoming President Trump ups the ante of tariffs especially on goods from Mexico, Canada and China when he enters office.”

“Meanwhile, US equities rallied Monday after President-elect Trump nominated Scott Bessent, founder of Key Square Group, as Treasury Secretary. Investors view the hedge fund manager as market-friendly and hope he will moderate Trump’s protectionist policies, such as import taxes,” he added.

Philstocks Financial Research Manager Japhet Tantiangco said, "the market’s sideways trading ended in the negative territory amid the lack of a positive catalyst. The Peso’s weakness against the US Dollar, continuously testing the 59.00 level, also weighed on the market."

He also noted that "US president-elect Donald Trump’s remarks via social media saying he would impose 25 percent tariffs on Canada and Mexico, and an additional 10 percent tariff on China dampened sentiment."