Stocks retreated on Monday, Jan. 26, as investors pared positions ahead of fourth-quarter economic growth data, with the benchmark index slipping below a key psychological support level.

The Philippine Stock Exchange index (PSEi) fell 59.39 points, or 0.94 percent, to finish at 6,273.87. The decline marked the second consecutive day of losses for the gauge, fueled by concerns that the pace of the nation's economic expansion may have cooled in the final months of 2025.

Trading remained lackluster, with 1.22 billion shares valued at ₱5.78 billion changing hands. Decliners beat advancers 117 to 88, while 62 issues remained unchanged.

Market sentiment was weighed down by expectations that the upcoming gross domestic product (GDP) report, scheduled for release on Jan. 29, will show a moderation in growth. Analysts pointed to a slowdown in government disbursements as primary headwind. Michael Ricafort, chief economist at Rizal Commercial Banking Corp., noted that the GDP figures could be “relatively softer” due to drag in infrastructure spending, specifically citing delays related to anomalous flood-control projects that have hampered state expenditure.

The breach of the 6,300 level triggered further technical selling, according to Luis Limlingan, managing director at Regina Capital Development Corp.

He noted that buying pressure remained largely on the sidelines as investors adopted defensive positioning across most sectors. Services led the downward move, though the Mining and Oil sub-index managed to buck the trend and post gains.

Foreign investors contributed to the downward pressure, recording net outflows of ₱13.06 million during the session. Japhet Tantiangco, research manager at Philstocks Financial, said the cautious stance is likely to persist until the government provides clarity on the economy’s trajectory.

While a sluggish GDP print typically dampens equity valuations, some market participants see a potential silver lining for the credit market. A weaker growth profile may provide the Bangko Sentral ng Pilipinas with the necessary room to further loosen monetary policy.

Ricafort suggested that a softer reading could support a 25-basis-point interest rate cut at the central bank’s next policy meeting on Feb. 19, an outcome that would aim to stimulate borrowing and revive economic momentum.