PSEi down on weaker Philippine growth outlook

The main index snapped its four-day climb on Thursday as market sentiment was dampened by weaker economic prospects due to global trade uncertainties.

The bellwether Philippine Stock Exchange index (PSEi) declined by 0.28% or 18.09 points to close at 6,444.16, while the broader all shares index edged up by 0.02% or 1.04 points to 3,808.39.

“The Asian Development Bank (ADB) and ASEAN+3 Macroeconomic Research Office’s (AMRO) downgrade of their 2025 and 2026 Philippine economic growth forecasts weighed on investor sentiment,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“The PSEi declined as, by the looks of it, the market is still wary of the possible effects of global trade developments here in the country as the Philippine government said that the tariff negotiations with the United States are not finished yet,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

In its latest Asian Development Outlook report, the ADB trimmed its Philippine gross domestic product growth forecast to 5.6% for 2025 from the previous 6% and to 5.8% from 6.1% for next year.

AMRO also cut its growth projections for the country to 5.6% for this year and 5.5% for next year from its previous estimate of 6.3% for both 2025 and 2026, based on its latest ASEAN+3 Regional Economic Outlook report.

The US lowered its reciprocal tariff rate on Philippine goods to 19% from 20% following a meeting between US President Donald J. Trump and President Ferdinand R. Marcos, Jr. at the White House this week.

Secretary Frederick D. Go, who heads the Office of the Special Assistant to the President for Investment and Economic Affairs, said on Thursday that negotiations between the Philippines and the US are not yet done as details are still being finalized.

“The local market dropped mainly due to profit taking on index heavyweights International Container Terminal Services, Inc. (ICTSI) and Manila Electric Co.,” Mr. Tantiangco added.

Almost all sectoral indices closed higher. Mining and oil increased by 1.35% or 127.35 points to 9,518.54; financials rose by 0.4% or 9.11 points to 2,268.74; property went up by 0.28% or 6.88 points to 2,406.75; holding firms climbed by 0.05% or 2.81 points to 5,472.32; and industrials edged up by 0.24 point to 9,180.17.

Meanwhile, services retreated by 1.13% or 25.67 points to 2,238.68.

“Puregold Price Club, Inc. was the top index gainer, climbing 3.08% to P40.10. ICTSI was the main index laggard, falling 2.87% to P460,” Mr. Tantiangco said.

Value turnover declined to PHP 6.35 billion on Thursday with 1.1 billion issues exchanged from the PHP 10.18 billion with 1.94 billion issues traded on Wednesday.

Decliners narrowly beat advancers, 99 versus 97, while 56 names were unchanged.

Net foreign buying dropped to P96.22 million from P181.16 million. — Revin Mikhael D. Ochave