PHILIPPINE STOCKS dropped further on Monday, pulling the main index back to the 5,600 level, as economic concerns dampened investor confidence.
The Philippine Stock Exchange index (PSEi) plunged by 1.53% or 87.45 points to close at 5,641.18, while the broader all shares index dropped by 1.01% or 32.17 points to 3,161.12.
This was the PSEi’s lowest close in almost two weeks or since it finished at 5,617.23 on Oct. 14.
The benchmark index opened Monday’s session at 5,706.13, lower than Friday’s close of 5,728.63. It climbed to an intraday high of 5,709.08 but failed to stay above the 5,700 mark as it ended at the session’s low.
COL Financial Group, Inc. Research Analyst Denise Joaquin said the local market fell to the 5,600 level on Monday as the peso plunged to a fresh all-time low of P63.95 per dollar.
“Persistent macro headwinds continue to weigh on sentiment and could keep investors on the sidelines ahead of the third-quarter earnings season and the Federal Reserve’s policy rate decision later this week,” she said.
Regina Capital Development Corp. Head of Sales Luis A. Limlingan said the local bourse closed lower as investors were cautious over rising oil prices, as these affect Philippine inflation and also the broader economy.
“Market sentiment was further weighed down by the Philippines’ infrastructure spending contracting for 14 consecutive months, raising concerns over the sustainability of economic growth. Persistent cost pressures and weak infrastructure activity continued to cloud the market outlook, keeping investors cautious toward local equities,” he added.
Data from the Department of Budget and Management showed infrastructure and other capital outlays fell by 16.9% or P14.4 billion to P70.5 billion in August from P84.9 billion in the same month a year ago. This marked the 14th straight month of year-on-year declines in infrastructure spending.
The downtrend began in July 2025, when President Ferdinand R. Marcos, Jr., in his State of the Nation Address, raised concerns over substandard and allegedly nonexistent flood control projects and ordered a nationwide audit and review.
All six sectoral indices closed in the red. Holding firms sank by 2.37% to 100.75 points to 4,158.80; mining and oil dropped by 2.26% or 420.32 points to 18,140.40; financials shed 1.81% or 32.54 points to 1,767.04; services fell by 1.4% or 42.10 points to 2,974.05; industrial retreated by 0.43% or 31.51 points to 7,261.70; and property slipped by 0.4% or 7.24 points to 1,789.76.
Decliners overwhelmed advancers, 106 to 61, while 78 names were unchanged.
Value turnover increased to P5.91 billion on Monday with 38.27 billion shares traded from the P4.83 billion with 2.41 billion issues that changed hands on Friday.
Net foreign selling was at P45.06 million, a reversal of the P684.25 million in net buying recorded previously. — Alexandria Grace C. Magno