Philippine equities remain under pressure as volatility weighs on sentiment

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Philippine equities under pressure

Highlights

PSEi falls 0.44% to 5,680.35 on Friday and remains 6.16% lower year-to-date from its Dec. 29, 2025 close of 6,052.92.
Bangko Sentral ng Pilipinas' surprise 50-basis-point rate hike on Oct. 22 triggers concerns over higher borrowing costs, inflation, and increased competition from fixed-income investments.
Mynt, Inc.'s Oct. 20 P60.9-billion IPO—market’s largest—draws company-specific interest but fails to lift overall Philippine equity sentiment amid macroeconomic pressure.

October market moves and key drivers

As reported by BusinessWorld Online, the Philippine Stock Exchange index falls 0.44%, or 25.23 points, to 5,680.35 on Friday, while the broader all shares index declines 0.51%, or 16.31 points, to 3,178.42.

Month on month, the PSEi edges up slightly from its Sept. 30 finish of 5,679.48. On a year-to-date basis, however, the index is down 6.16%, or 372.57 points, from its Dec. 29, 2025 close of 6,052.92.

Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., says the market ends October close to its September level but remains materially lower for the year, indicating that investor confidence has yet to recover convincingly. He describes the month as volatile and largely sideways, with intermittent bargain hunting offset by concerns over inflation, interest rates and the peso.

Mr. Arce says the Bangko Sentral ng Pilipinas' surprise 50-basis-point rate hike on Oct. 22 prompts investors to reassess the effect of higher borrowing costs on corporate earnings and stock valuations. He adds that rising rates also increase competition from fixed-income investments, particularly for property companies and other highly leveraged sectors.

Macroeconomic pressure and limited support

BDO Securities Corp. President John Tristan D. Reyes says economic headlines weigh on the market last month, including a renewed spike in inflation, the peso's slide past P64 against the U.S. dollar, the central bank's jumbo rate increase, higher oil prices and weak infrastructure spending.

COL Financial Group, Inc. Research Analyst Denise Joaquin says sentiment remains lackluster as rising bond yields and the peso's decline to record lows damp trading activity. Headline inflation returns to this year's peak of 7.2% in September, its fastest pace in more than three years, while the peso hits a record low of P64.17 on Oct. 27.

Despite the broader weakness, Mr. Reyes points to Mynt, Inc.'s Oct. 20 listing as a notable development. The GCash operator debuts on the Philippine Stock Exchange after a P60.9-billion initial public offering, the largest in the market's history, but company-specific interest does not yet translate into broader demand for Philippine equities.

In our earlier article on the PSEi rebound despite the peso hitting a record low, we covered how bargain hunting lifted Philippine shares after early weakness even as currency pressure kept sentiment cautious. We also noted that foreign investors turned net buyers again and that traders were closely watching peso movements and broader macroeconomic conditions for the market’s next direction.

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