Philippine Stocks Decline Amid Weak Peso and Uncertainty

Photo courtesy of Manila Bulletin

The Philippine Stock Exchange index (PSEi) fell on Tuesday, September 30, closing at 5,953.46, down by 44.14 points (0.74%). This marks the seventh consecutive day of losses, driven by domestic uncertainties and a weakening peso. The property sector led the decline, while miners and banks saw gains, with trading volume reaching 1.57 billion shares valued at ₱9.09 billion.

The losing streak is attributed to investor caution, exacerbated by ongoing domestic challenges. According to Regina Capital Development Corp.'s managing director Luis Limlingan, investor confidence is hindered by local economic concerns and the peso's depreciation. The local decline contrasts with Wall Street’s gains on September 29, where U.S. indexes rose amidst hopes for interest rate cuts following benign inflation data.

Japhet Tantiangco, research manager at Philstocks Financial Inc., explained that sentiments are dampened by ongoing corruption issues in the Philippines, further aggravated by the peso's weakness against the U.S. dollar. The absence of positive catalysts continues to impact the market negatively.

Rizal Commercial Banking Corp.'s chief economist, Michael Ricafort, highlighted that external factors, such as the rising U.S. dollar and looming U.S. government shutdown, are affecting local sentiment. The possibility of a delay in the release of U.S. jobs data and Federal Reserve rate decisions due to the shutdown adds to market apprehension. These elements contributed to a record-high gold price of $3,871.72 an ounce on September 30.

Looking forward, the PSEi's performance may continue to be impacted by both local and international economic developments. Observers are closely watching the U.S. government’s decisions and their potential implications on the global economy. The market's future direction will likely depend on how these external and domestic uncertainties are resolved.

Key Takeaways

• PSEi drops for the seventh day, influenced by peso decline and uncertainties.
• Investor sentiment dampened by corruption issues and lack of positive catalysts.
• External factors, like U.S. shutdown risks, exert additional pressure on markets.

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  Adapted by ASEAN Now from Manila Bulletin 2025-09-30