Stocks plunge amid weak peso, rate hike expectations

MANILA, Philippines — The local stock market plunged to a fresh low in nearly 11 months amid concerns over monetary tightening and the weak peso.

The bellwether Philippine Stock Exchange index (PSEi) plunged by 2.2 percent or 126.3 points to close yesterday’s session at 5,610.39.

This is the PSEi’s lowest finish since ending at 5,584.35 on Nov. 14, 2025.

The broader All Shares index likewise tumbled by 1.45 percent or 46.44 points, settling at 3,145.55.

Philstocks Financial research manager Japhet Tantiangco said the local market closed lower as expectations of rate hikes by both the Federal Reserve and the Bangko Sentral ng Pilipinas mount up.

Tantiangco said that in the Fed’s latest minutes of the meeting, officials signaled another possible rate hike by year end.

“Meanwhile, the Philippines’ latest inflation print of 7.2 percent points to a possible further monetary tightening here at home,” he said.

The peso also slumped to a new record low of 62.90 to $1 yesterday, eclipsing the previous all-time low of 62.86 set on Sept. 14.

All sectors were in the red, with services posting the biggest drop at 4.86 percent, followed by mining and oil, which lost 3.43 percent.

Trading was strong as total turnover value surged to P21.14  billion. Foreigners were net sellers with net outflows at P1.18 billion.

“Sellers finally returned, with gross foreign selling rising. The renewed selling comes as the concerns build for a higher-for-longer rate backdrop with September inflation at a three-year high of 7.2 percent, compounded by broader regional risk-off sentiment,” AB Capital Securities said.

Market breadth was negative as decliners battered advancers, 112 to 73, while 67 issues were unchanged.

ICTSI was the most actively traded stock, shedding 5.93 percent to P841.50. It was followed by BDO Unibank, which slipped by 0.18 percent to P111, and SM Investments, which rose by 1.26 percent to P522.50.

AB Capital said PSEi is now approaching 5,580 major support, while 5,700 reverts to resistance.