PSEi dips on weaker peso, flood control scandal
Published Sep 2, 2025 05:04 pm
The local stock market dipped due to the weaker peso and lower manufacturing data amid concern over massive corruption in flood control projects.
The main index shed 11.46 points, or 0.19 percent, to close at 6,128.89. Half of the sectoral indices were in the green. Volume was higher but still anemic at 1.16 billion shares worth ₱5.58 billion, as losers beat gainers—111 to 84, with 59 unchanged.
“The market continues its decline, still facing heavy selling pressure. Investor confidence appears to be waning as no clear positive catalyst is in sight,” said Regina Capital Development Corp. Managing Director Luis Limlingan.
He added that, “Moreover, sentiment remains uncertain with inflation expectations staying elevated, alongside forecasts that the Bangko Sentral ng Pilipinas (BSP) may delay rate cuts until next year instead of within this year.”
Philstocks Financial research manager Japhet Tantiangco said, “The local market dropped further as investors digested the growth slowdown of the local manufacturing sector as reflected in the latest S&P Global Philippines manufacturing purchasing managers’ index (PMI).”
He noted that, “The peso’s weak position also weighed on the local market. Investors also dealt with the lingering issues over the country’s public infrastructure, particularly flood control projects.”
“The Philippine Stock Exchange composite index (PSEi) declined for the fourth-straight trading day after the United States (US) dollar/peso exchange rate went up lately and after recent political noises on corruption allegations.”
He said this is also partly due to recent political risk factors in Indonesia and in Thailand that weighed on market sentiment in the region.