PSEi down 2% as economic growth disappoints

PHILIPPINE STOCKS posted their biggest single-day drop since November as weak gross domestic product (GDP) data triggered a sell-off.

The Philippine Stock Exchange index (PSEi) plunged by 2.08% or 132.42 points to end at 6,223.36, while the broader all shares index fell by 1.36% or 49.01 points to close at 3,548.03.

This was the PSEi’s largest single-day decline since it lost 2.49% or 142.64 points on Nov. 14, ending at 5,584.35. This was also the index’s worst close in nearly a month or since Jan. 5’s finish of 6,164.53.

The main stock benchmark opened Thursday’s session at 6,365.46, rising from Wednesday’s finish of 6,355.78 and already its best showing for the session. After the release of the GDP report, the index slid to the 6,200 level, hitting an intraday low of 6,215.80.

“The market sank as investors sought shelter following a dismal GDP growth print, suggesting that the desired economic rebound eluded the country despite the holiday boost,” AP Securities, Inc. said in a market note.

“The PSEi ended lower amid strong, broad-based selling pressure after GDP figures came in below expectations,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “Investor sentiment weakened as the softer growth data raised concerns over the country’s near-term economic outlook.”

Philippine GDP growth slowed to 3% in the fourth quarter from 5.3% in the same period a year prior and the revised 3.9% print in the third quarter. This was the slowest print in nearly five years or since the 3.8% contraction in the first quarter of 2021. Outside of the pandemic, this was the worst since the 1.8% growth recorded in the fourth quarter of 2009, or during the Global Financial Crisis.

This brought full-year 2025 GDP growth to 4.4%, well below the government’s 5.5%-6.5% goal. This was slower than 2024’s 5.7% and was the weakest annual expansion since the 3.9% in 2011, counting out the 9.5% contraction in 2020 due to the pandemic.

These were well below the 4.2% and 4.8% median estimates for fourth-quarter and full-year 2025 GDP growth in a BusinessWorld poll.

Most sectoral indices closed in the red. Financials plunged by 2.48% or 52.67 points to 2,064.05; property decreased by 2.47% or 55.59 points to 2,191.47; services went down by 1.99% or 51.88 points to 2,548.24; holding firms fell by 1.51% or 77.20 points to 5,003.71; and industrials retreated by 0.7% or 63.27 points to 8,945.36.

Mining and oil rose by 1.17% or 221.49 points to 19,149.65.

Decliners outnumbered advancers, 124 to 75, while 56 names closed unchanged.

Value turnover inched up to P7.55 billion on Thursday with 1.34 billion shares traded from the P7.53 billion with 1.58 million issues that changed hands on Wednesday.

Net foreign selling was at P406.24 million on Thursday, a reversal of the P463.37 million in net buying recorded in the previous session. — A.G.C. Magno