PH markets down after economy posts weakest growth since pandemic

Philippine markets closed weaker Thursday after government data showed that the economy recorded its lowest post-pandemic growth, dragged by tepid spending due to corruption concerns and climate-related disruptions.

The local stock barometer PSEi fell by 132.42 points or 2.08% to 6,223.36, while the broader All Shares index declined by 49.01 points or 1.36% to 3,548.03.

"The PSEi ended lower amid strong, broad-based selling pressure after GDP figures came in below expectations," Luis Limlingan, head of sales of Regina Capital Development Corp., said in a mobile message.

"Investor sentiment weakened as the softer growth data raised concerns over the country's near-term economic outlook. This prompted risk-off positioning, dragging most sectors into negative territory," he added.

Economic growth came in at 3.0% in the fourth quarter of 2025, the weakest quarterly performance since the 3.8% contraction recorded in the first quarter of 2021 when lockdowns were still in place due to the COVID-19 pandemic.

This brought the full-year 2025 growth to 4.4%, lower than the administration's already downgraded goal of 5.5% to 6.5%. This is the third straight year that the country has fallen short of achieving its target.

Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan attributed the deceleration to weather-related disturbances, and the impact of the flood control corruption scandal on business and consumer confidence.

Nearly all sectoral indices of the PSE closed in the red with financials down 2.49%, industrial 0.70%, holding firms 1.52%, property 2.47%, and services 2.00%, while mining and oil was the lone index that posted gains up 1.17%.

More than 1.341 billion shares, valued at P7.546 billion, changed hands. Decliners led advancers, 124 to 75, while 56 issues were unchanged.

The Philippine peso also depreciated against its US counterpart, as it shed 20.5 centavos to close at P58.945:$1 from Wednesday's finish of P58.874:$1. — VDV, GMA Integrated News