The PSEi lost 2.49 percent to 5,584.35 on Friday, bringing losses since the start of the year to 14.5 percent.
Alfred Benjamin R. Garcia, research head at AP Securities, said this was the index’s weakest finish since May 28, 2020, which was just a few months into the crippling COVID-19 lockdowns.
Selling intensified after former congressman Zaldy Co accused President Marcos and former House Speaker Martin Romualdez of inserting billions of pesos in the 2025 national budget. Malacañang swiftly denied the allegations.
“Just when we thought the index was going to stabilize above 5,700, the market sold off after Zaldy Co’s allegations reignited governance risks,” said Juan Paolo Colet, managing director at China Bank Capital.
“Immediate support is now at 5,500. Whether that holds will depend on how the latest twist in the corruption saga unfolds,” he added.
Warning issued about stock volatility
These escalating political risks are compounding the market’s troubles.
“The market plunged on derisking ahead of the weekend as the Senate corruption hearings resume and political noise intensifies,” said Alfred Benjamin R. Garcia, outgoing research head at AP Securities Inc.
“The prevailing sentiment is too weak for us to encourage investors to catch a falling knife at this point,” he added.
What else happened in the market?
All subsectors closed in the red, led by mining and oil (-5.3 percent) and services (-3.11 percent).
A total of P6.25 billion worth of shares changed hands, while foreigners were net sellers to the tune of about P105 million.
Villar holding firm loses trillion-peso status
Tycoon Manuel Villar Jr.’s Villar Land Holdings fell below P1 trillion in market value after a major asset writedown, following auditors’ rejection of the company’s P1.3-trillion land revaluation in Villar City.
Fresh off a six-month trading suspension, Villar Land lost nearly 50 percent of its value in just two days.
Trading under the symbol HVN, the stock is now at P1,126, valuing the developer at P725.3 billion.
The plunge erased about P700 billion in market value on trades worth only a few million pesos, underscoring the illiquid nature of the company’s shares.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
