PSEi closes at year’s lowest as index drops 1.18%
Investor sentiment remain fragile with markets assessing a weaker domestic growth outlook even as the peso declined to P63.72 vis-a-vis the US dollar, from Thursday’s P63.70 close.
The Philippine Stock Exchange Index (PSEi) fell 67.06 points, or 1.18 percent, to 5,593.49 on Friday, its lowest closing level so far this year, while the peso weakened by 2 centavos, or 0.03 percent, to P63.72 per US dollar from Thursday’s P63.70 close, as economic growth concerns and expectations of tighter US monetary policy continued to weigh on local market sentiment.
The local bourse extended its decline for a third consecutive session.
Financial the lone sector to advance
Financials was the only sector to advance, gaining 0.99 percent, while the rest of the sectoral indices ended lower.
Among index constituents, Puregold Price Club Inc. led gainers with a 4.11-percent increase, while International Container Terminal Services Inc. was the session’s biggest laggard, plunging 4.23 percent.
Market turnover reached P5.19 billion, with foreign investors recording net outflows of P260.51 million.
Investor sentiment remained fragile as markets assessed a weaker domestic growth outlook. BMI, a unit of Fitch Solutions, cut its Philippine growth forecast for 2026 to 2.6 percent from 3 percent, while Nomura lowered its projection to 3 percent from 3.8 percent.
Downgrades follow Q3 growth of just 2.1%
The downgrades followed third-quarter economic growth of just 2.1 percent, the weakest expansion since early 2021, and October inflation of 7.8 percent.
The peso, meanwhile, remained under pressure after the latest US inflation figures strengthened expectations of further Federal Reserve rate increases. US consumer prices rose 0.4 percent in October, above the 0.3-percent forecast, while core inflation increased 0.3 percent against expectations of 0.2 percent.
The stronger inflation reading and hawkish comments from Fed officials lifted Treasury yields and supported the US dollar, making dollar assets more attractive.
The peso traded between P63.64 and P63.94 on Friday, opening at P63.85 before closing at P63.72. The morning weighted average was P63.838 on volume of $1.63084 billion, while the afternoon average was P63.739 on $571.99 million.
The full-day weighted average stood at P63.813, with total spot volume reaching $2.20283 billion. The FX settlement rate was P63.838.