PSE backs SEC in fight against corruption

MANILA, Philippines — The Philippine Stock Exchange Inc. (PSE) backed Securities and Exchange Commission (SEC) chairperson Francis Lim’s remarks on the adverse effects of corruption on investor confidence, noting its drag on market performance in recent weeks.

Lim on Thursday expressed “deep regret” for the confusion caused by his recent statement, which claimed that corruption issues had wiped out approximately P1.7 trillion in market value of publicly listed companies in just three weeks.

PSE president and CEO Ramon Monzon said that data from the exchange indicated that only P185 billion in market capitalization was lost during the three weeks in question.

He said that the P1.7-trillion number attributed to S&P Global Market Intelligence has since been disowned by the latter.

“That being said, SEC chairman Francis Lim is correct in assailing the level of corruption in the country and its adverse effects on the economy and financial markets,” Monzon said.

“The PSE is one with the administration and our regulator in implementing key reforms meant to enhance and deepen our capital markets further,” he said.

A stock market analyst, who requested anonymity, said that while there may be “inaccuracies” in the numbers cited by Lim, this does not detract from the fact that the ongoing flood control scandal in the country has indeed impacted the local stock market’s performance.

As of Friday’s closing, the Philippine Stock Exchange index has lost 341.96 points since ending at 6,379.75 on July 28, when President Marcos ordered an audit of flood control projects during his 2025 State of the Nation Address.

In a speech during the 57th annual FINEX conference on Oct.7, Lim said that the flood control project scandal “has shaken public confidence. Investors aren’t fleeing because of weak fundamentals; they’re fleeing because of weak integrity. It’s a stark reminder that corruption is a weapon of mass wealth destruction.”

Lim assured 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,” he said.