Stocks slip as risk-off mood persists before GDP

Philippine stocks declined further on Wednesday as risk-off sentiment prevailed before the release of second-quarter gross domestic product (GDP) data this week, even as inflation slowed in July and global oil prices eased.

The Philippine Stock Exchange index (PSEi) dropped by 0.16% or 10.33 points to close at 6,286.31, while the broader all shares index went down by 0.07% or 2.53 points to end at 3,412.82.

“Despite better-than-expected July consumer price index (CPI), a stronger peso, and easing Brent, the PSEi failed to hold above 6,300. Weakness was broad-based, suggesting investors were reluctant to add risk ahead of Friday’s 2Q GDP release,” AB Capital Securities, Inc. said in a market note.

A BusinessWorld poll of 21 economists and analysts yielded a median GDP growth estimate of 2.8% for the April-to-June period. This would be sharply slower than the 5.4% expansion in the second quarter of 2025 and match the 2.8% growth in the first quarter.

This would bring the average GDP growth to 2.8% for the first half, below the government’s 3.5%-4.5% full-year target.

“The PSEi closed Tuesday at 6,286.31, slipping 0.16% following the previous day’s decline as investors digested July’s inflation print of 6.2%, which was lower than the previous month’s 6.4%. Investors also remained cautious ahead of the upcoming release of key economic data,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

Philippine inflation eased to 6.2% in July from 6.4% in June. However, this was much faster than the 0.9% in the same month last year.

This was the slowest headline figure in four months or since the 4.1% in March. July also marked the third straight month that inflation eased.

The July print was within the Bangko Sentral ng Pilipinas’ 5.6%-6.6% forecast for the month and below the 6.4% median estimate in a BusinessWorld poll of 21 economists and analysts.

Majority of sectoral indices closed in the red. Financials decreased by 0.33% or 6.30 points to 1,910.21; industrials went down by 0.31% or 24.91 points to 8,063.63; property retreated by 0.17% or 3.16 points to 1,895.44; services dropped by 0.09% or 3.22 points to 3,482.66; and holding firms slipped by 0.06% or 2.89 points to 4,461.91.

Meanwhile, mining and oil increased by 4.63% or 797.68 points to 18,020.41.

“JG Summit Holdings, Inc. was the day’s top index gainer, rising 2.97% to PHP 22.50. DigiPlus Interactive Corp. was the worst index performer, dropping 5.64% to PHP 9.20,” Mr. Tantiangco said.

Advancers beat decliners, 102 to 84, while 49 names were unchanged.

Value turnover went up to PHP 6.77 billion on Wednesday with 1.24 billion shares traded from the PHP 4.5 billion with 594.009 million issues that changed hands on Tuesday.

Net foreign selling was at PHP 585.29 million, a reversal of the PHP 249.91 million in net buying in the previous session. — Alexandria Grace C. Magno