Philippine car sales down 7.6% in August

Philippine vehicle sales declined year on year in August to the lowest volume in four months, dragged by weaker demand for both passenger and commercial cars, according to industry data.

A joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed total vehicle sales fell by 7.6% from a year earlier to 36,174 units last month.

The drop was the slowest since the 10% decline in April, and the lowest volume since the 33,580 units sold that same month. On a monthly basis, vehicle sales slid 5.5% from 38,295 units in July.

“Despite a modest dip in month-on-month figures, the industry remains optimistic, driven by evolving consumer preferences and a growing shift toward sustainable mobility,” CAMPI said in a statement on Tuesday.

Passenger car sales, which made up over a fifth of industry volume, slumped 20% year on year to 7,591 units in August. Compared with July’s 8,120 units, passenger car sales were down 6.5%.

Commercial vehicle sales, which accounted for almost four-fifths of total sales, fell 3.5% to 28,583 units in August from a year earlier. This was also 5.3% lower month on month.

Within the commercial vehicle segment, light commercial vehicle sales dropped 4.4% year on year to 20,852 in August, while sales of Asian utility vehicles (AUV) inched up 0.2% to 6,840 units.

Month on month, light commercial vehicle sales were down 7.4%, while AUV sales rose 2.6%.

Sales of light- and medium-duty trucks and buses fell 11.6% and 10.6% year on year to 555 and 279 units, respectively, while sales of heavy-duty trucks and buses rose 26.7% to 57 units. Compared with July, sales of light, medium, and heavy trucks fell 8.6%, 7.6% and 27.8%, respectively.

From January to August, new car sales edged up by 0.2% to 305,381 units from a year ago. The growth was supported by commercial vehicles, whose sales rose 8.7% to 244,023 units. Passenger car sales, on the other hand, dropped 23.6% to 61,358 from a year earlier.

CAMPI said commercial vehicles remained the anchor of industry sales, while electrified vehicles (xEVs) gained traction, now accounting for 6% of the car market.

The industry sold 2,244 xEVs in August, or 6.2% of total sales, though this was down 17.1% from the 2,707 sold in July. From January to August, xEV sales reached 18,439 units, representing 6.04% market share.

Broader global and domestic risks are weighing on auto sales, said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

“Protectionist policies, tensions in the Middle East and other geopolitical risks are headwinds that reduce sales, incomes, employment and other business opportunities,” he said in a Viber message. “That could reduce the ability to pay by borrowers, including those with auto loans.”

He also cited the Chinese “ghost month” belief, saying it might have discouraged some buyers in August.

Still, he expects better prospects in the coming months. “Better weather conditions would help improve vehicle sales data, especially towards the Christmas holiday season, amid lower interest rates that help increase demand for vehicles and auto loans,” he added.

The August figures show weaker demand across segments, John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, told BusinessWorld.

“Key drivers include higher interest rates, which make financing costlier, inflation edging up again, and consumer caution ahead of the ‘ber’ months,” he said in a Viber message.

He added that while the holiday season could spur some recovery through promotions and increased spending, the rebound might be modest given inflation, peso volatility and trade uncertainties tied to US tariffs.

Toyota Motor Philippines Corp. remained the dominant player with 146,357 units sold from January to August, up 4.1% from 140,654 units last year. It had a 47.93% market share.

Mitsubishi Motors Philippines Corp. ranked second with 57,908 units sold, down 1% from 58,513 units. Its market share was 18.96%.

Nissan Philippines, Inc. placed third with 15,160 units sold, down 17% year on year, accounting for 4.96% of the market.

Ford Motor Co. Philippines, Inc. sold 14,940 units, down 21.2%, while Suzuki Philippines, Inc. sold 14,519 units, up 9.9%. — Justine Irish D. Tabile, Reporter

Philippines may lose P30B from zero-tariff deal on US goods

The Philippines risks losing as much as PHP 30 billion in revenues if the government implements a zero-tariff scheme on selected American goods, the Bureau of Customs (BoC) told congressmen on Tuesday.

Customs Commissioner Ariel F. Nepomuceno said the agency projects PHP 27 billion to PHP 30 billion in collections from US imports such as vehicles, pharmaceuticals and soybeans this year. That revenue, however, would be foregone should tariffs be scrapped as part of trade talks with Washington.

“The reduction of tariff from our US imports… will impact our collections,” he told a House of Representatives hearing.

The discussions come as the US seeks wider trade concessions from Manila. US President Donald J. Trump earlier announced a 19% tariff on Philippine exports to the US, slightly lower than the 20% floated in August. In turn, the Philippines agreed in principle to exempt US cars, wheat, soybeans and medicines from domestic tariffs.

The Philippines had initially faced a 17% tariff in April.

Trade Undersecretary Allan B. Gepty said last month zero tariffs on American goods had not been formally granted, stressing that negotiations were continuing. Finance Secretary Ralph G. Recto also said in July that foregone revenues could reach about PHP 6 billion should the country agree to a narrower set of exemptions.

However, Mr. Nepomuceno’s estimate suggests a much bigger revenue impact if a broader tariff cut is applied.

The zero-tariff policy could complicate the government’s fiscal consolidation plans, John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, told BusinessWorld.

“The potential revenue loss is substantial, especially given the National Government’s ongoing efforts to manage the fiscal deficit and rising debt levels,” he said in a Viber message.

The Philippines’ debt-to-gross domestic product ratio stood at 63.1% as of end-June, the highest since 2005 and above the 60% threshold considered sustainable for developing economies.

Outstanding debt reached a record PHP 17.56 trillion in July, up 11.9% from a year earlier and already surpassing the government’s PHP 17.36-trillion projection for 2025.

Removing tariffs on selected US goods might ease consumer prices, but Mr. Rivera said the government should strengthen tax enforcement to offset revenue losses from the zero-tariff treatment.

“Beyond revenue concerns, the broader market implications could be mixed,” he said, noting that it could lead to cheaper goods but disproportionately affect producers.

“It may expose local producers, especially in agriculture and light manufacturing, to stiffer competition from cheaper US imports, which could affect domestic production and employment in vulnerable sectors,” he said.

Despite the risks, the Customs bureau expressed confidence in meeting its 2025 collection goals.

Customs Assistant Commissioner Vincent Philip C. Maronilla reported that revenues hit PHP 543.95 billion in the first seven months of the year.

“We’re pretty confident that we will reach, if not surpass, our 2025 collection target,” he told lawmakers.

The BoC is tasked with collecting PHP 1.06 trillion this year, 14.28% higher than its actual collection of PHP 931.05 billion last year.

Value-added tax (VAT) on imports has been the “largest and most consistent revenue contributor,” Mr. Maronilla said.

From January to July, VAT collections reached PHP 467 billion, close to the Bureau of Internal Revenue’s PHP 473-billion full-year target.
Economists said the government now faces a difficult balancing act between maintaining fiscal revenues and deepening trade relations with the US.

“While such a policy might bring short-term consumer gains, it must be approached with caution and complemented by safeguards,” Mr. Rivera said.

He added that any decision must weigh the potential benefits of cheaper imports and stronger trade ties against the long-term risks of eroding government revenue and weakening domestic producers. — Kenneth Christiane L. Basilio, Reporter

Federal Reserve move key to BSP rate cut — Finance chief

The Bangko Sentral ng Pilipinas (BSP) may deliver one more policy rate cut before year-end, but the move could depend on whether the US Federal Reserve lowers borrowing costs in its meeting this week, Finance Secretary Ralph G. Recto said on Tuesday.

Mr. Recto, who sits as a member of the BSP’s Monetary Board, told reporters the central bank is weighing the likelihood of the Fed’s first rate reduction this year and its implications for global capital flows.

“(This) depends on what happens in the US as well with the Fed,” he said. “[It] depends of course on our inflation numbers. But clearly, I think we can reduce the policy rate by another 25 basis points (bps).”

The Finance chief projected that the BSP might still implement two “safe” cuts of 25 bps each at its policy meetings on Oct. 9 and Dec. 11.

The BSP resumed monetary easing after inflation cooled within its 2-4% target, though a recent uptick in August could complicate its policy path.

Inflation averaged 1.7% in the first eight months, matching the BSP’s full-year forecast. The Philippine Statistics Authority will release September inflation data on Oct. 7.

Last month, the Monetary Board cut the benchmark rate by 25 bps to 5%, the lowest since November 2022. Since it started its easing cycle in August 2024, the BSP has slashed policy rates by 150 bps, including two separate 25-bp cuts each in April and June.

BSP Governor Eli M. Remolona, Jr. earlier noted that while the central bank had reached a “sweet spot” in its easing cycle, there is still space for another cut. However, he cautioned that shifts in inflation and external factors could alter the trajectory.

Mr. Recto said the Philippine economy remains on track to achieve its 2025 growth target of 5.5% to 6.5%. He also said the central bank is not yet in the final stretch of its easing cycle.

He added that the Philippines’ possible inclusion in JPMorgan’s Government Bond Index for Emerging Markets could boost investor confidence and help lower borrowing costs.

“What is important is that we may be included in the JP Morgan index,” he said.
“That will reduce rates as well. We’re very excited about that, and we have a good chance of getting 3% [or] 4% now. We’ll be in that basket, [and it will be] good for our credit rating.”

The Department of Finance earlier said the Philippines has been placed on JPMorgan’s positive watchlist, a precursor to inclusion in the index. Such membership could channel billions of dollars of passive investment into peso-denominated government bonds.

In a separate commentary, Nomura Global Markets Research said the BSP still has space to ease policy further while balancing the government’s fiscal consolidation drive with growth support.

“The government remains committed to its fiscal consolidation agenda but is slowing the pace in order to support growth, while BSP still has some scope to ease further,” Nomura economist Euben Paracuelles said.

Meanwhile, Mr. Recto said the Philippines is unlikely to return to the Financial Action Task Force’s (FATF) “gray list” of jurisdictions under increased monitoring for money laundering amid the government’s anti-corruption drive.

“We are already catching them,” he said. “They are being sued. People will be jailed. We will get our money back,” he added, referring to investigations into money laundering involving former Public Works engineers. The officials allegedly funneled flood-control funds through casinos.

The FATF removed the Philippines from its gray list in February after improvements in anti-money laundering and counterterrorism financing frameworks.

Last week, Senator Panfilo M. Lacson revealed that some Public Works officials allegedly laundered billions of pesos siphoned from flood-control projects by gambling in casinos and converting funds into chips. — Aubrey Rose A. Inosante, Reporter

Peso back at PHP 56 level with Fed cuts eyed

The peso returned to the PHP 56 level on Tuesday amid a weaker dollar as markets expect several rate cuts from the US Federal Reserve to support growth in the world’s largest economy.

The local unit closed at PHP 56.91 versus the greenback, jumping by 27.1 centavos from its PHP 57.181 finish on Monday, Bankers Association of the Philippines data showed.

The peso opened Tuesday’s session slightly stronger at PHP 57.07 versus the dollar. Its intraday high was at PHP 56.90, while its worst showing was at PHP 57.165 against the greenback.

Dollars exchanged rose to USD 1.95 billion on Tuesday from USD 1.52 billion on Monday.

“The dollar-peso closed lower as the market continued to price in the series of rate cuts from the Fed,” a trader said in a phone interview.

The greenback slid ahead of a widely expected cut by the Fed this week and potentially further easing for the rest of the year following recent data showing signs of weakness in the world’s largest economy, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Wednesday, the trader sees the peso moving between PHP 56.60 and PHP 57 per dollar, while Mr. Ricafort expects it to range from PHP 56.80 to PHP 57.05.

The dollar slid to a more than two-month low against sterling and the euro and a 10-month trough versus the Australian dollar on Tuesday as investors firmed bets for a Federal Reserve interest rate cut this week, Reuters reported.

The US dollar index, which tracks the currency against a basket of six major rivals, fell to 97.121 after hitting its lowest since July 7, with US President Donald J. Trump renewing calls for aggressive monetary easing.

Markets expect a 25-basis-point (bp) rate cut on Wednesday, with rapidly softening labor market data being the key driver of the ramp-up in easing bets in recent weeks.

Mr. Trump in a social media post on Monday called on Fed Chair Jerome H. Powell to enact a “bigger” cut, pointing to the housing market.

“Focus remains on the Fed meeting on Wednesday,” said Mohit Kumar, strategist at Jefferies. “Key would be Powell’s tone.”

“If Powell puts more emphasis on inflation risks or the uncertainty surrounding the growth and inflation outlook, we could see the market paring back some of the rate cut expectations,” he added.

Elsewhere, sterling rose 0.2% to USD 1.3627, hitting its highest since July 8.

Data showed on Tuesday that Britain’s jobs market has lost a little more steam, potentially easing worries at the Bank of England about persistent inflation pressures.

The euro rose as much as 0.3% against the weakening dollar to USD 1.1797, a level not seen since July 3.

The Australian dollar edged 0.06% lower to USD 0.6666 after climbing to USD 0.6677, its strongest level since Nov. 8.

Against the yen, the dollar slipped 0.3% to 146.920 ahead of the Bank of Japan policy meeting on Friday, with money markets expecting the central bank to keep rates at 0.5%.

Japan’s farm minister and the chief government spokesperson joined the race on Tuesday to lead the ruling party and replace outgoing Prime Minister Shigeru Ishiba, who announced his resignation last month. — A.M.C. Sy with Reuters

Stocks rebound on bargain hunting before Fed

Philippine shares rebounded on Tuesday as investors picked up cheap stocks after the market’s drop, although the mood remained cautious as the US Federal Reserve was set to begin its two-day meeting overnight.

The Philippine Stock Exchange index (PSEi) jumped by 1.5% or 91.31 points to close at 6,148.74, while the broader all shares index rose by 0.97% or 35.63 points to end at 3,706.20.

“After the market closed in the red yesterday (Monday), buyers took control of today’s session as bargain hunting persisted. However, firm catalysts are still needed to determine whether this marks the beginning of a true market recovery,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The local market surged on the back of a technical rebound in battered banking names as investors take the opportunity to pick up blue-chip banks like BDO and BPI at a discount,” AP Securities, Inc. said in a market note. Shares of BDO Unibank, Inc. climbed by PHP 5.40 or 3.96% to close at P141.80 each on Tuesday, while Bank of the Philippine Islands surged by PHP 7.40 or 7.23% to end at PHP 109.70 apiece.

Mr. Limlingan added that the local market tracked Wall Street’s rise overnight.

“Investor sentiment was lifted by expectations of an upcoming interest rate cut from the Fed, which slightly offset the concerns about slowing job growth,” he said.

The three major US stock indexes closed higher on Monday, with the S&P 500 and the Nasdaq notching intraday record-high closes, as investors await the US Federal Reserve’s crucial policy meeting later this week, Reuters reported.

The Federal Open Market Committee meeting on Sept. 16-17 looms large over sentiment this week, with market participants widely expecting a 25-basis-point reduction following recent economic data signaling labor market weakness.

Traders on Monday are pricing in a 96% chance of a 25-basis-point cut at this week’s meeting.

The Fed has kept its target rate at the 4.25%-4.5% range since December last year.

The majority of sectoral indices closed higher on Tuesday. Financials jumped by 3.69% or 74.18 points to 2,080.42; mining and oil climbed by 3.21% or 367.98 points to 11,804; services rose by 1.29% or 28.15 points to 2,206.69; holding firms increased by 0.84% or 42.29 points to 5,028.02; and industrials went up by 0.5% or 45.16 points to 9,029.01.

Meanwhile, property declined by 0.43% or 10.78 points to 2,462.58.

Value turnover increased to P6.56 billion on Tuesday with 3.69 billion shares traded from the P6.24 billion with 3.48 billion shares exchanged on Monday.

Market breadth was positive as advancers beat decliners, 101 to 93, while 59 names closed unchanged.

Net foreign selling thinned to PHP 35.46 million on Tuesday from PHP 473.25 million on Monday. — Alexandria Grace C. Magno with Reuters

Cash remittances hit 7-month high at USD 3.18 billion in July

Filipinos abroad sent more money home in July, hitting a seven-month high as remittances from sea-based workers grew at a slightly quicker pace than those from land-based workers, the Bangko Sentral ng Pilipinas (BSP) said on Monday.

Cash remittances coursed through banks jumped by 3% to USD 3.179 billion in July from USD 3.085 billion in the same month a year ago, data from the central bank showed.

This marked the highest monthly remittance level since the USD 3.38 billion posted in December last year.

Month on month, remittances grew by 7% from USD 2.987 billion previously.

“The Philippines saw sustained growth in cash remittances in July of this year, with remittances from sea-based overseas Filipinos (OFs) increasing slightly faster than funds from land-based OFs,” the BSP said in a statement.

Money sent home by land-based workers made up the bulk of cash remittances in July, which went up by 3% year on year to USD 2.59 billion.

Remittances from sea-based workers rose by 3.1% year on year to USD 585 million in July.

“The peso’s relative weakness against the US dollar also encouraged higher remittances, as families received greater peso value,” Ruben Carlo O. Asuncion, chief economist at the Union Bank of the Philippines (UnionBank), said in a Viber message.

In July, the peso performed weaker at an average PHP 56.7523 per US dollar from the PHP 56.3586 recorded in June.

Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., said in a Viber message that the remittances growth in July was also driven by the start of the school season which meant overseas Filipino workers (OFWs) sent more money to their families to pay for tuition fees and school supplies.

Mr. Ravelas said global job stability may have allowed sea-based workers to send home more money.

Mr. Asuncion said the increase in remittances by sea-based workers reflects “strong demand in the maritime sector, buoyed by stable global trade and the recovery of cruise operations.”

“Higher dollar-denominated wages and renewed contracts for seafarers contributed to this growth, underscoring the sector’s resilience and its role as a stabilizing force for overall remittance inflows,” he said.

Meanwhile, personal remittances, which include both cash coursed through banks and informal channels and in-kind remittances, climbed by 3.1% to USD 3.53 billion in July from USD 3.43 billion in the same month last year.

Most of the personal remittances that month came from workers with contracts of one year and above, amounting to USD 2.81 billion, up 3% from a year earlier.

Those with contracts of less than one year sent home USD 650 million, rising by 3.3% year on year.

Seven-month period

In the first seven months of the year, cash remittances from OFWs increased by 3.1% to USD 19.932 billion from USD 19.332 billion a year ago.

This as remittances sent by land-based workers rose by 3.3% to USD 15.97 billion during the period, while sea-based workers’ remittances inched up by 2.3% to USD 3.96 billion.

Filipinos in the United States accounted for 40.3% of the total cash remittances sent in the January-to-July period.

This was followed by OFWs in Singapore (7.1%), Saudi Arabia (6.2%), Japan (5%), the United Kingdom (4.8%), the United Arab Emirates (4.4%), Canada (3.4%), Qatar (2.9%), Taiwan (2.8%) and South Korea (2.7%).

Personal remittances in the first seven months reached USD 22.206 billion, up by 3.1% from USD 21.532 billion a year prior.

Mr. Asuncion said the upcoming holiday season will allow remittances to sustain its growth in the coming months.

“Looking ahead, remittances are expected to maintain an upward trajectory in the coming months, supported by seasonal inflows during the ‘-ber’ months and the holiday season,” he said.

However, the UnionBank economist also noted that global economic uncertainty and policy changes across the world pose risks to the country’s remittances growth.

“Nonetheless, steady overseas employment and a competitive peso should help sustain positive momentum,” he added.

The BSP expects cash remittances to grow by 2.8% to USD 35.5 billion this year. — Katherine K. Chan

Philippines now a step closer to re-entering JPMorgan’s bond index

The Philippines is now on the positive watchlist for JPMorgan Chase & Co.’s emerging market government bond index, putting it a step closer to re-entering the list that could help bring in more foreign investments.

JPMorgan said in a report on Sept. 12 that Philippine peso-denominated government bonds (RPGB) have been tagged as “Index Watch Positive,” according to statements from the Bangko Sentral ng Pilipinas (BSP) and the Department of Finance (DoF).

This is the final review phase for the bonds’ potential inclusion in the bank’s Government Bond Index for Emerging Markets (GBI-EM) series.

“Inclusion would be expected to attract more foreign investments, increasing liquidity and lowering borrowing costs for the government and eventually the private sector… While the Philippines has been able to raise funds from foreign investors through its dollar-denominated bonds since the early 2000s, inclusion in the GBI-EM series is expected to help the government draw more foreign investors to its larger peso-denominated bond market,” the BSP said.

JPMorgan’s GBI-EM tracks the performance of sovereign and quasi-sovereign bonds issued by emerging market countries. The country’s inclusion will need to be approved by a certain percentage of investors reviewing the index.

The Philippines would have a weight of about 1% of the GBI-EM Global Diversified Index if included, according to JPMorgan.

The Philippines’ global peso notes were removed from the GBI-EM in January last year due to illiquidity. For potential inclusion in the index are RPGBs issued from 2023 with tenors up to 20 years, the DoF said.

“Getting on the positive watchlist is a testament to the work the government and financial market leaders has done especially in the last few years to expand our capital markets, particularly our local bond market. This news serves as further impetus to execute more changes and reforms,” BSP Governor Eli M. Remolona, Jr. said.

“This is a promising development for the Philippines as the potential inclusion of our government bonds into this global index means increased capital inflows and therefore more funds for the government to better serve Filipinos. This is an excellent opportunity for us to promote our capital markets to a wider range of investors,” Finance Secretary Ralph G. Recto said.

National Treasurer Sharon P. Almanza earlier said it could take the Philippines two to three years to re-enter the bond index after getting added to JPMorgan’s watchlist.

The bank said it will conduct its Index Watch assessment within six to nine months and will provide updates in the first quarter of 2026.

The BSP and the DoF said that JPMorgan cited the Philippines’ “proactive market reforms,” including reviving the repo market, launching the Philippine Peso interest rate swap market, and the consolidation of benchmark tenors, in its decision to put the country on its index watchlist.

“JP Morgan also noted positive feedback from GBI-EM investors, particularly on the accessibility of the RPGB market via Brussels-based clearing house Euroclear, as well as improvements in secondary market liquidity through the consolidation of benchmark tenors… Due to reforms, foreign ownership of RPGBs has doubled from 1.8% in 2021 to 5.2% as of June 2025, JPMorgan said,” the BSP said.

Meanwhile, secondary market liquidity and taxation issues were among the key concerns raised by investors, it added. — Bettina Faye V. Roc, Banking Editor

Peso declines versus dollar

The peso declined against the dollar on Monday after the United States urged its allies to impose tariffs on countries that are buying oil from Russia.

The local unit closed at PHP 57.181 versus the greenback, dropping by 8.1 centavos from its PHP 57.10 finish on Friday, Bankers Association of the Philippines data showed.

The peso opened Monday’s session weaker at PHP 57.20 versus the dollar. Its intraday high was at PHP 57.16, while its worst showing was at PHP 57.38 against the greenback.

Dollars traded went up to USD 1.52 billion on Monday from USD 1.48 billion on Friday.

The dollar was generally stronger on Monday as US President Donald J. Trump said they could impose more sanctions on Russia, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Mr. Trump said on Saturday that the US is prepared to impose fresh energy sanctions on Russia, but only if all North Atlantic Treaty Organization (NATO) nations cease purchasing Russian oil and implement similar measures, Reuters reported.

In recent weeks, the US has stepped up pressure on NATO countries to tighten energy sanctions on Russia in a bid to help end its war with Ukraine — a conflict Mr. Trump has struggled to bring to a close despite repeated threats of harsher penalties on Moscow and its partners.

For Tuesday, a trader said the peso could move between PHP 57 and PHP 57.40 per dollar, while Mr. Ricafort expects it to range from PHP 57.10 to PHP 57.30. — A.M.C. Sy with Reuters

PSEi slides to 6,000 level as market seeks leads

Philippine shares sank to the 6,000 level on Monday to hit a five-month low due to selling pressure amid a lack of leads, weak market sentiment, and lingering corruption concerns.

The benchmark Philippine Stock Exchange index (PSEi) declined by 0.84% or 51.78 points to close at 6,057.43, while the broader all shares index decreased by 0.4% or 15.02 points to end at 3,670.57.

This was the PSEi’s worst finish in over five months or since it closed at 6,006.34 on April 8.

“The index continued to flirt with the 6,000 level as political noise continues to cloud investor sentiment,” AP Securities, Inc. said in a market report.

President Ferdinand R. Marcos, Jr. said no one will be exempt from an independent investigation into alleged anomalies in infrastructure projects, as he vowed to rebuild public trust as protests over corruption loom, Reuters reported.

Mr. Marcos assured the graft-weary public that the probe would break from past efforts, calling it an “inflection point” in how the government operates and spends funds.

He appointed a former Supreme Court justice to lead a newly formed commission and said it would tackle all wrongdoers no matter who they are, with congressional investigations already implicating several powerful political figures.

“The local market declined on its first day of the week, weighed by the weakness of the Philippine peso against the US dollar,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a market report. The peso dropped by 8.10 centavos to close at PHP 57.181 per dollar on Monday, and has ended at the PHP 57 level for four consecutive sessions as markets await the US Federal Reserve’s policy meeting this week, where it is expected to deliver its first rate cut since late last year.

“The lack of a local positive catalyst also caused investors to exit the market. Foreign investors were net sellers for the day, with net outflows… adding to the market’s drop,” Mr. Tantiangco said.

Net foreign selling was at PHP 473.25 million on Monday, a reversal of the PHP 293.44 million in net buying recorded on Friday.

Most sectoral indices closed lower. Financials fell by 2.43% or 50.02 points to 2,006.24; holding firms decreased by 1.19% or 60.31 points to 4,985.73; property went down by 1.19% or 29.90 points to 2,473.36; and mining and oil dropped by 0.29% or 33.82 points to 11,436.02.

Meanwhile, services increased by 0.99% or 21.43 points to 2,178.54, and industrials climbed by 0.32% or 28.90 points to 8,983.85.

Value turnover went down to PHP 6.24 billion on Monday with 3.48 billion shares traded from the PHP 6.82 billion with 6.27 billion stocks that changed hands on Friday.

“Converge ICT Solutions, Inc. was the day’s top index gainer, jumping 6.43% to PHP 11.92. DigiPlus Interactive Corp. was the main index laggard, plunging 7.04% to PHP 18.50,” Mr. Tantiangco said.

Decliners outnumbered advancers, 117 to 84, while 53 names were unchanged. — A.G.C. Magno with Reuters

Philippine external debt jumps to USD 149B

The Philippines’ outstanding external debt jumped to a record USD 148.87 billion as of end-June amid the weakening of the US dollar, the Bangko Sentral ng Pilipinas (BSP) said.

Central bank data showed the country’s external debt rose by 14.4% from USD 130.318 billion in the same period last year.

“The increase in external debt was driven primarily by borrowings, which included bond issuances by the National Government amounting to USD 5.83 billion and external financing tapped by local banks amounting to USD 3.44 billion,” the BSP said in a statement.

Quarter on quarter, external debt inched up by 1.5% from the USD 146.74 billion logged at the end of the first quarter.

“The increase in external debt for Q2 (second quarter) 2025 was primarily due to valuation effects from the depreciation of the US dollar,” the BSP said.

External debt accounts for all borrowings by residents from nonresidents.

The BSP said the external debt level remained “sustainable,” equivalent to 31.2% of gross domestic product. This was better than the 31.5% in the previous quarter but higher than the 28.9% a year ago.

The central bank said the weaker greenback increased the US dollar equivalent of borrowings denominated in other currencies by USD 1.49 billion.

In the April-to-June period, the peso recorded a strong performance against the dollar as it traded between the PHP 55 and PHP 56 level, averaging PHP 56.581 as of end-June.

“The net acquisition of Philippine debt securities amounting to USD 660.96 million also contributed to the increase (in external debt), while net repayments amounting to USD 315.67 million partially tempered the increase in the country’s external debt,” the BSP said.

Most of the country’s public sector obligations, amounting to USD 88.371 billion, were from the National Government while the rest came from the BSP (USD 3.919 billion) and government banks (USD 1.81 billion).

Japan remained the Philippines top creditor with loans amounting to USD 15.599 billion, followed by the United Kingdom with USD 6.358 billion and Singapore with USD 4.837 billion.

The borrowing mix was composed mainly of US dollar-denominated debt, followed by debt in Philippine peso and debt in Japanese yen.

As of the second quarter, the country’s short-term external debt based on remaining maturity concept (STRM) was at USD 28.63 billion. STRM debt is composed of loans with original maturities of one year or less plus amortization on medium and long-term accounts falling due within the next 12 months.

“This level remains well-covered by the country’s gross international reserves (GIR) of USD 106 billion, providing 3.7 times cover for short-term obligations,” the BSP said.

“The country’s GIR-to-STRM debt ratio remains at par with emerging economy peers.”

Meanwhile, the BSP said resident borrowers’ lower principal and interest payments brought the debt service ratio down to 8.7% during the period from 9.8% a year ago. This ratio measures a country’s capacity to meet its obligations based on its foreign exchange earnings.

“This resulted from lower principal and interest payments by resident borrowers as of the second quarter of 2025,” it said.

BSP data showed the public sector’s external debt went up by 88.2% to USD 94.801 billion at end-June from USD 50.36 billion the previous year.

Private sector obligations, on the other hand, declined by 32.3% year on year to USD 54.072 billion from USD 79.83 billion a year ago. — Katherine K. Chan

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