PHILIPPINE shares extended their decline on Wednesday, with the benchmark index falling to its lowest level for the year as concerns over economic growth and a possible acceleration in inflation weighed on investor sentiment.
The Philippine Stock Exchange index (PSEi) dropped 58.92 points, or 1.03 percent, to close at 5,679.48, its third straight session of losses. It was the lowest level in more than 10 months, or since Nov. 14, 2025, said Michael Ricafort, chief economist at Rizal Commercial Banking Corp.
Philstocks Financial Inc. research manager Japhet Tantiangco said growth concerns weighed on the market, citing the potential impact of a severe El Niño on public infrastructure spending early next year.
Luis Limlingan, Regina Capital Development Corp. head of sales, said sentiment also remained cautious following the Bangko Sentral ng Pilipinas’ warning that inflation could accelerate to as high as 7.4 percent in September from 6.1 percent in August.
The warning raised concerns over its implications for monetary policy and economic growth, he said.
Tantiangco added that negative cues from Wall Street, the continued rise in long-term US Treasury yields and the weak peso also weighed on local shares.
The peso also weakened for a third straight trading day, closing at P62.64 from P62.565 on Tuesday.
Ricafort said elevated US Treasury yields, including the 10-year yield at 5.21 percent and the 30-year yield at 5.55 percent, continued to support the US dollar by offering higher US-denominated interest returns.
He also pointed to the P2.85-billion net foreign selling in local equities, the upcoming P30-billion retail treasury bond (RTB) offering and the planned Mynt initial public offering in October as factors that could affect available peso liquidity.
Ricarfort noted, however, that possible dollar inflows ahead of the RTB offering and a Mitsubishi Corp. transaction involving Ayala Corp. could provide some support for the peso.
Trading strengthened, with net value turnover reaching P7.90 billion. Foreign investors were net sellers, posting P950.67 million in net outflows, Tantiangco said.
The broader market ended with 106 decliners against 74 gainers and 71 unchanged issues.
Holding firms were the only sector to advance, rising 0.21 percent, while services posted the steepest decline at 1.21 percent.
NAZYLEN JOY MABANGLO
