Philippine Stocks Hit Fresh 3-Year Lows

The Philippine Stock Exchange Index slid 2.1% to close at 6,223 on Thursday, hitting its lowest level in over three weeks, as weaker-than-expected economic growth dampened market sentiment. The Philippines’ economy expanded by 3% year-on-year in Q4 2025, missing expectations of 3.8% growth and slowing from 3.9% in the previous quarter. It marked the weakest growth since the economy contracted in Q1 2021, dragged down by the fallout from a high-profile infrastructure corruption scandal, a series of destructive typhoons, and mounting trade pressures. Despite the headwinds, the government remains cautiously optimistic about a second-half recovery, backed by higher spending, easing inflation, and rate cuts. Heavyweight stocks led the decline, notably International Container Terminal Services (-2.5%), SM Investment Corporation (-2.1%), and BDO Unibank (-4.4%). Meanwhile, the Philippine peso weakened to around 58.96 per dollar, retreating from a one-month high in the previous session.

The Philippine Stock Exchange Index dropped 1.3% to close at 5,759 on Friday, hitting a fresh three-year low as market sentiment remained sour following a sharp slowdown in economic growth amid a corruption scandal. GDP grew 4.4% yoy in Q3 2025, easing from a 5.5% expansion in the previous quarter. This marked the slowest pace of growth since early 2021, reflecting reduced public spending tied to an infrastructure-related corruption probe and disruptions caused by successive typhoons. Investigations uncovered an alleged scheme involving lawmakers, public works officials, and contractors to divert infrastructure funds, resulting in substandard or unfinished projects. Meanwhile, the weak data strengthened the central bank’s case for additional rate cuts to support the economy. Major decliners included SM Prime Holdings, Inc. (-5.1%), Ayala Corp. (-4.4%), Ayala Land, Inc. (-4.4%), and Metropolitan Bank & Trust Co. (-2.9%).

The Philippine Stock Exchange Index dropped 1.5% on Wednesday, hitting its lowest level since late September 2022, dragged by domestic growth concerns ahead of Q3 GDP data and a broader market sell-off. Economists noted that the Philippine economy likely grew slightly slower in Q3, citing weather disruptions and flood control corruption as dampening factors. Global sentiment also turned cautious following steep losses in US tech shares and renewed valuation warnings from major Wall Street bank executives, stoking concerns of a potential market correction. Meanwhile, latest data showed that inflation held steady at 1.7% in October, below forecasts of 1.8% and remaining under the central bank’s 2%–4% target range, reinforcing bets for another rate cut in December. Among index heavyweights, SM Investments (-1.7%), SM Prime Holdings (-2.9%), Bank of the Philippine Islands (-2.5%), and Ayala Land (-2.0%) led the declines.