On Monday, the Philippine Stock Exchange index limped to the finish line, closing 0.21 percent lower at 6,052.92. This brought losses for 2025 to 7.29 percent.
“This caps the most challenging trading year since the pandemic crash of 2020, as the index underperformed most analysts’ initial base-case targets and also lagged other regional stock markets,” said Juan Paolo Colet, managing director at China Bank Capital.
Net foreign selling hits P51 billion
“Foreign investors were net sellers by around P51 billion for the year due to a mix of trade, economic, and governance concerns,” he added.
Overseas investors continued to cash out of domestic stocks up to the last trading day, with net foreign selling reaching P168.7 million on Monday.
PSE underperforms
Wendy B. Estacio-Cruz, head of research at Unicapital Securities, said the local stock market struggled to gain traction in 2025 despite early optimism.
“The PSEi’s performance fell short of early-year expectations,” she said in a text message.
“Initial optimism from easing inflation, potential rate cuts, and post-election stability was offset by weak GDP cues, currency volatility, governance concerns, and cautious foreign investor sentiment, keeping the market mostly sideways,” she added.
The stock market also remains relatively inexpensive, potentially cushioning further downside.
She was referring to low valuation metrics, including 9.7 times forward price-to-earnings (P/E) and 1.2 times price-to-book (P/B).
What’s next?
Estacio-Cruz noted that the PSE index may hover around current levels “barring a material improvement in sentiment or macro conditions.”
For now, the firm’s 2026 PSE index target remains under review, she said.
—Edited by Miguel R. Camus
