PSEi sinks to 6,200 level before GDP data release

The main index dropped to the 6,200 level on Monday, hitting a three-week low, as the market opted to stay on the sidelines before the release of Philippine gross domestic product (GDP) data and amid geopolitical concerns.

The Philippine Stock Exchange index (PSEi) slumped by 0.93% or 59.39 points to close at 6,273.87, while the all shares index declined by 0.52% or 18.88 points to finish at 3,580.43.

This was the stock benchmark’s lowest close in three weeks or since it finished at 6,164.53 on Jan. 5.

“The PSEi ended lower, extending its decline from last week after breaking below the 6,300 level. Trading was cautious as buying pressure stayed on the sidelines,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “Expectations of a low fourth-quarter GDP print dampened sentiment, prompting continued profit taking and defensive positioning across sectors.”

“The market took a defensive stance, selling local equities amid rising geopolitical uncertainty and in anticipation of the weak 4Q25 GDP growth print on Thursday,” AP Securities, Inc. likewise said in a market note.

The Philippine Statistics Authority will release fourth-quarter and full-year 2025 GDP data on Thursday, Jan. 29.

The economy may have grown by an annual 4.2% from October to December, according to a median forecast of 18 economists polled by BusinessWorld.

If realized, this is much slower than the 5.3% expansion in the same period in 2024 but would be faster than the over four-year low of 4% recorded in the third quarter of 2025.

This would put the full-year average at 4.8%, below the government’s 5.5%-6.5% growth target. This would also be slower than the 5.7% expansion in 2024 and the weakest since the 9.5% contraction posted in 2020.

Analysts said slower government spending and weakening investor confidence due to a wide-ranging corruption scandal involving anomalous flood-control and infrastructure projects likely continued to drag economic growth.

Most sectoral indices closed in the red. Services sank by 2.06% or 52.79 points to 2,501.58; property decreased by 1.13% or 25.95 points to 2,266.57; industrials went down by 0.78% or 70.99 points to 8,966.75; and holding firms retreated by 0.73% or 37.13 points to 5,019.74.

Meanwhile, mining and oil surged by 3.22% or 587.72 points to 18,804.07, and financials went up by 0.44% or 9.44 points to 2,122.46.

Market breadth was negative as decliners outnumbered advancers, 117 to 88, while 62 names closed unchanged.

Value turnover went down to PHP 5.77 billion on Monday with 1.21 billion shares traded from the PHP 6.29 billion with 758.07 million issues that changed hands on Friday.

Net foreign selling decreased to PHP 13.06 million from PHP 574.16 million. — AGCM