The Philippine Stock Exchange Index (PSEi) took a nosedive on Thursday, dropping 2.08 percent to 6,223.36, as investors reacted to a disappointing Q4 and full-year 2025 GDP report released earlier in the day.

The Philippine Statistics Authority reported that economic growth slowed further in the fourth quarter to 3.0 percent, down from 3.9 percent in the previous quarter, heightening concerns over the country’s growth trajectory.

Sentiment was further pressured by the peso’s continued weakness, which followed the US Federal Reserve’s decision to keep policy rates unchanged, reinforcing a higher-for-longer rate outlook. 

Trading robust

Despite the selloff, trading activity was robust, with net value turnover at P7.05 billion. Foreign investors recorded P406.24 million in net outflows, implying similarly-increased apprehension in investing in Philippine equities after the GDP data release.

Today’s slump saw sector performance broadly negative. Mining stocks were the lone bright spot, rising 1.17 percent, while banks suffered the steepest losses, sliding 2.49 percent. 

Market breadth negative

Market breadth was decisively negative, with decliners overwhelming advancers, 124 to 75. Alliance Global Group (AGI) was the day’s top gainer, up 1.53 percent to P7.29 ahead of its removal from the flagship index and relegation to the MidCap on Monday, 2 February.

Meanwhile, the peso strengthened slightly to P58.94 per dollar, improving from P59.05 in the previous session. The modest rebound came as the US dollar softened after the Federal Reserve’s policy announcement, with markets digesting the decision and paring back some long-dollar positions.

Peso found support from profit-taking in dollar

Locally, the peso also found support from profit-taking in the dollar and lighter importer demand, even as weak GDP data capped gains. 

While the currency recovered some ground today, it remains sensitive to US rate expectations, growth concerns at home, and global risk sentiment, suggesting continued volatility in the near term.