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The Philippine Stock Exchange index (PSEi) fell below the 6,000-point level as investor confidence was eroded by weaker peso and forecasts for slower economic growth.
The main index dropped 65.94 points, or 1.1 percent, to close at 5,988.02 on Friday, Oct. 24, with mining stocks leading the retreat. Volume surged to 2.89 billion shares valued at ₱26.28 billion. Losers outnumbered gainers 123 to 75, while 49 stocks were unchanged.
“The Philippine market ended below the 6,000 mark as sellers took control of the session today,” said Luis Limlingan, managing director at Regina Capital Development Corp. “The sustained depreciation of the dollar against the peso continues to weigh on market sentiment.”
Limlingan added that market participants are “likely pricing in the anticipated lower gross domestic product forecast projected by various institutions.”
Philstocks Financial Research Manager Japhet Tantiangco said the market’s decline was driven primarily by the peso’s weakness against the US dollar.
He noted that investors also digested the latest data on the government's fiscal position, which posted a decline in both revenue and expenditures.
Rizal Commercial Banking Corp. Chief Economist Michael Ricafort noted the PSEi declined for the second day in three trading days following the U.S. dollar exchange rate's recent move to P58.60 levels, near nine-month highs and the record high of ₱59 seen on Dec. 19, 2024.
Ricafort also cited increased US trade tensions with China and Canada, as well as recent U.S. sanctions on Russian oil companies, which led to higher global crude oil prices.
