Philippine shares fall below 6,400 due to US downgrade

Local shares in the Philippines declined below the 6,400 level on Wednesday due to negative sentiment following Moody's credit rating downgrade of the US.

The benchmark Philippine Stock Exchange index (PSEi) fell by 1.85 percent or 119.51 points, closing at 6,335.33.

This decline marks the fifth consecutive session of losses for the PSEi, which had previously surpassed the 6,500 level a week earlier.

The broader All Shares index also declined by 1.20 percent to close at 3,720.57.

Investors are becoming more cautious and selling off their holdings as initial optimism wanes following the US downgrade.

Services counters were hardest hit, dropping by 2.21 percent, followed by financials and holding firms with declines of 1.99 percent and 1.83 percent respectively.