The Philippine Stock Exchange Index (PSEi) ended the trading week lower at 6,464.67, down 0.35 percent on Friday, 16 January.

Investors booked profits following Thursday’s rally, which was supported by optimism over the World Bank’s latest positive economic outlook and expectations of another policy rate cut by the Bangko Sentral ng Pilipinas (BSP).

Trading remained robust

Despite the pullback, trading activity remained robust. Net value turnover reached P6.81 billion, higher than the year-to-date average of P6.21 billion. Foreign investors remained net buyers, posting P337.05 million in net inflows.

Sector performance was mixed. Financials led gainers, rising 0.52 percent, while the services sector recorded the steepest decline, falling 1.74 percent. Market breadth was slightly negative, with decliners edging advancers, 99 to 93.

The local bourse has rallied since the start of the year, gaining 411.75 points, or 6.37 percent, from its end-2025 close of 6,052.92.

Investor confidence improves

Investor confidence has improved despite ongoing probes into the flood control scandal, buoyed by expectations of an economic rebound and support from holiday-season earnings.

The Senate Blue Ribbon Committee is set to resume its investigation next Monday, 19 January, following an extended break. Trading at the stock exchange will also resume that day after the weekend.

However, the last time the committee reconvened after a prolonged recess — on 14 November 2025 — the PSEi dropped 2.49 percent to 5,584.35, nearing levels last seen during the height of the Covid-19 pandemic in May 2020.

That session coincided with the release of the first in a series of videos by fugitive former congressman Zaldy Co, in which he alleged that President Ferdinand R. Marcos Jr. was the mastermind behind the flood control scandal.

Governance issues must be addressed

PSE President and CEO Ramon Monzon has previously stressed that governance issues must be addressed for the market to fully recover and sustain growth into 2026.