Ayala Avenue, in the core of the Philippines' financial capital, Makati, houses corporate headquarters, banks, and the Philippine Stock Exchange, which mirrors the country's economic growth projected to be the second fastest in Asia next year at 6.8 percent, next to India, and ahead of Indonesia and Malaysia at 5.2 percent, according to the Institute of International Finance.
Photograph courtesy of Ayala on Facebook
On 14 November 2025, political headwinds affected the financial sector as renewed attention on the Senate’s resumed probe into the “floodgate” corruption scandal, combined with a surprise video exposé from former Congressman Zaldy Co, soured investor sentiment and pushed both the stock market and the Philippine peso lower.
The Philippine Stock Exchange Index (PSEi) fell 2.49 percent to 5,584.35, nearing levels last seen during the height of the COVID-19 pandemic in May 2020.
The market opened the day with modest gains but reversed sharply late in the session as corruption-related developments reignited political uncertainty and investor anxiety.
The selloff followed events earlier that morning, when the Senate Blue Ribbon Committee resumed hearings into the flood control project scandal, revealing new details implicating additional political figures. The situation intensified after former Ako Bicol Representative Zaldy Co released a video statement accusing President Ferdinand R. Marcos Jr. of involvement in P100 billion worth of alleged budget insertions.
According to RCBC Chief Economist Michael Ricafort, upcoming rallies organized by Iglesia Ni Cristo members next week also contributed to investor unease, adding to an already volatile market atmosphere.
Trading activity remained relatively brisk, with P6.08 billion in net value turnover, exceeding the year-to-date daily average of P5.87 billion. Foreign investors turned net sellers, recording P104.62 million in net outflows, reflecting heightened caution amid ongoing political turmoil.
All major sectors ended in negative territory, led by mining and oil, which recorded the steepest decline at –5.28 percent. Decliners outnumbered gainers 133 to 64, indicating broad-based weakness.
Only three index stocks posted gains, including Aboitiz Equity Ventures (AEV) and Ayala-led ACEN Corp., a renewable energy firm.
The Philippine peso also weakened further, closing at approximately P59.07 to the US dollar, just below its previous record low of P59.17 earlier this week. This followed cautious statements from several US Federal Reserve officials, which lowered market expectations for another Fed rate cut this year. Fed Fund futures now price in roughly –0.12, or less than one –0.25 cut for the remainder of 2025.
Ricafort said that additional geopolitical signals also influenced sentiment. US National Economic Council Director Kevin Hassett stated that the October 2025 US jobs report would be released without an unemployment rate, while US Secretary of State Marco Rubio noted that former President Trump would meet Russian leader Vladimir Putin again only if it would “help end the war in Ukraine.”
Despite the movement, the peso remains slightly above the P59-per-dollar psychological level—a threshold it held for more than three years from September 2022 to October 2025—which, according to Ricafort, indicates that the currency has remained relatively stable even as the dollar strengthened.
Ricafort added that positive offsetting factors for the peso–dollar exchange rate include “the start of some Christmas holiday-related spending, making it more compelling for some overseas Filipino workers and other US dollar earners to convert their US dollars for pesos near the record high.”
The weakening currency and steep market decline reflect growing investor unease over the corruption scandal affecting the government. Coupled with the US government’s resolution of its budget impasse, which strengthened the greenback, the Philippines must move quickly to restore confidence and stability in its financial markets to prevent further fallout.
