PH stocks, peso slide as economic growth concerns mount

The Philippine Stock Exchange index (PSEi) dropped to its lowest level of the year on Thursday, and the peso weakened against the US dollar following downgrades to the country's economic growth forecasts.

The local bourse’s main index declined by 1.12 percent to 5,730.02 points, and the broader All Shares by 1.10 percent to 3,210.72 points.

Luis Limlingan, Regina Capital Development Corp. head of sales, traced the PSEi’s drop to selling pressures.

“Market sentiment weakened further after S&P Global Ratings and the ADB (Asian Development Bank) sharply downgraded their Philippine growth forecasts for the year,” he said.

On Wednesday, the ADB announced the revision of its 2026 growth forecast for the country from 3.8 percent to 3.3 percent, citing the impact of tightening global conditions, an expected strong El Niño starting in the last quarter of the year, and energy-related issues arising from the Middle East crisis.

S&P, in turn, slashed its projection from 4.1 percent to 2.9 percent due to slower domestic output in the first half of the year.

Limlingan said these revisions “added to concerns over the pace of the local market recovery.”

Only Holding Firms gained during the day, rising by 0.43 percent.

Mining and Oil posted the deepest decline at 3.79 percent, followed by Industrial at 1.65 percent, Services at 1.52 percent, Financials at 1.33 percent, and Property at 1.15 percent.

Trading volume remained thin, with 863.67 million shares changing hands, amounting to a value turnover of nearly PHP5.1 billion.

Decliners beat advancers, 131 to 61, while 57 issues closed unchanged.

Meanwhile, the local currency finished the day at 62.73 to the US dollar, weakening from 62.58 in the previous session.

It opened the day weaker at 62.70 and traded between 62.70 and 62.79. The daily average stood at 62.75.

Volume reached USD1.14 billion, down from the USD 1.64 billion recorded the previous day.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said he expects the peso to trade between 62.60 and 62.80 to the US dollar on Friday.