PSEi, peso fall on growth concerns, strong dollar

Philippine financial markets weakened on Wednesday, with the benchmark stock index down falling below the 6,000 level and the peso extending its losing streak for the sixth straight trading day, as investors reacted to lower growth forecasts and a stronger dollar.

The Philippine Stock Exchange index (PSEi) lost 134.85 points or 2.20% to 5,991.37 at the closing bell. The broader All Shares index declined by 49.52 points or 1.47% to 3,315.62.

“The PSEi ended below the 6,000-level as the market reacted negatively to various lowered growth forecasts for the Philippines. Investor sentiment weakened as concerns over slower economic momentum prompted cautious positioning among market participants,” Regina Capital Development Corp. head of sales Luis Limlingan said in a mobile message.

A number of institutions have already downgraded their Philippine economic growth outlook including the Hongkong and Shanghai Banking Corp. at 3.4% (from 4.6% previously), and the International Monetary Fund (IMF) at 4.1% (from 5.6% previously).

“Meanwhile, selling pressure was observed across key sectors as investors reassessed their outlook on domestic growth prospects,” Limlingan said.

More than 8.712 billion shares, valued at P10.320 billion, changed hands. Decliners led advancers, 104 to 67, while 63 issues were unchanged.

Nearly all sectoral indices declined — financials by 3.09%, industrial by 0.62%, holding firms by 0.25%, services by 4.22%, and mining and oil by 0.84%. Property was the lone index that closed higher, up by 0.53%.

The Philippine peso, meanwhile, shed 20.1 centavos to close at P61.552:$1 versus Tuesday’s finish of P61.351:$1.

“The U.S. dollar/peso exchange rate went up went up for the 6th straight trading day… after the stronger US dollar vs. major global currencies recently to new 13-month highs or since May 2025, after hawkish Fed signals recently, with most Fed officials estimate Fed rate hikes in the coming months,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said. —VAL, GMA News