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Maynilad Water Services Inc.’s initial public offering (IPO) failed to buoy the market as the Philippine Stock Exchange index (PSEi) plunged to its lowest level in almost five years on Friday, Nov. 7, after the economy grew at a slower-than-expected pace.
The benchmark index fell by 76.22 points, or 1.31 percent, to close at 5,739.37. The property counter led the retreat, although miners and services posted strong gains.
Volume surged to 1.7 billion shares worth ₱14.17 billion due to the IPO. Losers outnumbered gainers—117 to 72, with 52 unchanged.
While the market weakened, Reyes Tacandong & Co. senior adviser Jonathan Ravelas said that “Maynilad defied gravity” as it closed at ₱14.98 a share, just a fluctuation below its IPO price of ₱15 per share.
“The Philippine market ended lower as selling pressure persisted following the release of GDP [gross domestic product] data, which came in widely below consensus,” said Regina Capital Development Corp. managing director Luis Limlingan. Third-quarter GDP growth disappointed, slowing to a 4.5-year low of four percent.
He noted that, “In addition, corporate earnings results were not strong enough to offset the negative impact of the weaker GDP print and the depreciation of the peso to ₱59 per United States (US) dollar.”
Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said the PSEi closed at its lowest in almost five years. To recall, the index plummeted to 5,738.39 on Sept. 2, 2020.
He said Friday’s drop was due to “the slower-than-expected third-quarter 2025 local GDP growth at four percent, which is a new 4.5-year low, or since the first quarter of 2021, that could fundamentally weigh on valuations compared to earlier market expectations.”
“The local bourse plunged as the third-quarter GDP came in below the consensus estimate of 5.2 to 5.3 percent and lower than the government’s 2025 growth target of 5.5 to 6.5 percent,” said Philstocks Financial Inc. assistant research manager Claire Alviar.
She explained that, “This suggests that the economy may struggle to meet the government’s growth goal for 2025. The decline in Wall Street overnight also contributed to the negative sentiment.”
