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'I deeply regret': SEC chair retracts $1.7-trillion market loss claim
Business
The Stock Market
'I deeply regret': SEC chair retracts $1.7-trillion market loss claim
'I deeply regret': SEC chair retracts $1.7-trillion market loss claim
Published Oct 9, 2025 06:33 pm
SEC Chairman Francis E. Lim
Securities and Exchange Commission (SEC) Chairman Francis E. Lim expressed regret over his claim that the local stock market lost ₱1.7 trillion in market capitalization due to the corruption scandal, which turned out to be fictitious.
“The information, which had been circulating within business circles and cited by some media outlets, was based on what I believed at the time to be a credible industry report,” said Lim in a statement issued on Thursday, Oct. 9.
He noted, “I have since learned that the report was fictitious. I deeply regret any confusion or concern that my statement may have caused.
“My sole intent was to underscore the vital importance of integrity in our markets and the devastating impact corruption can have on investor confidence.”
Nonetheless, Lim said, “Let me assure the public that the SEC remains firmly committed to promoting transparency, good governance, and investor protection.
“Corruption is indeed a weapon of mass wealth destruction, and it is in this spirit that I appeal to all sectors to unite behind the Marcos Administration’s strong campaign against corruption. Together, let us build a capital market — and a nation — founded on integrity and trust.”
Philippine Stock Exchange President and Chief Executive Officer Ramon S. Monzon said, “PSE data shows that only ₱185 billion in market capitalization was lost during the three-week period in question. The ₱1.7 trillion number attributed to S&P Global Market Intelligence has subsequently been disowned by the latter.”
“That being said, SEC Chairman Francis Ed. Lim is correct in assailing the level of corruption in the country, and its adverse effects on the economy and financial markets.”
For a longer period, Abacus Securities Corporation Vice President and Head of Research Nicky Franco said, “We are currently at a market cap of ₱18.95 trillion from ₱19.45 trillion in mid-June, so (the difference is) around ₱500 billion at most.”
Rizal Commercial Banking Corporation Chief Economist Michael L. Ricafort said that the 30-stock PSE benchmark index declined by about four percent since the President’s State of the Nation Address on July 28, 2025, “when the anti-corruption narrative started.”
Reyes Tacandong & Co. Senior Adviser Jonathan Ravelas explained that, “When investors sell, they’re not just reacting to numbers, they’re reacting to fear or doubt. And fear, especially in a scandal, is more contagious than any virus.”
“We’re in a holding pattern. Growth is slowing, confidence is shaky, and corruption is clouding the outlook. The fundamentals are there — but we’re not firing on all cylinders,” he pointed out.