Inflation worries sink stocks to 10-month low

MANILA, Philippines — The local stock market sank to a fresh 10-month low amid growing concerns over rising inflation.

The benchmark Philippine Stock Exchange index (PSEi) fell for a third straight session, losing 1.03 percent or 58.92 points to end at 5,679.48.

This was the worst finish for PSEi since closing at 5,584.35 on Nov. 14, 2025.

The broader All Shares index also weakened by 0.74 percent or 23.75 points, settling at 3,179.08.

Luis Limlingan said market sentiment remained cautious following the Bangko Sentral ng Pilipinas’ warning that inflation could accelerate to as high as 7.4 percent in September.

“This further weighed on investor confidence amid concerns over the potential implications for monetary policy and economic growth,” he said.

Philstocks Financial Inc. said negative cues from Wall Street amid the continuous rise in US long term treasury yields and the weak peso also weighed on the market.

“The local market extended its losses as economic concerns continue to plague sentiment,” it said.

All sectors were in the red, except for holding firms, which inched up by 0.21 percent.

Services registered the largest drop at 1.84 percent, followed by financials, which plunged by 1.29 percent.

Trading was strong as total value turnover expanded to P9.1 billion from the previous day’s P5.39 billion.

Decliners overpowered advancers, 106 to 74, while 71 issues did not change hands.

ICTSI was the session’s top traded stock, declining by 1.98 percent to P891 per share. It was followed by SM Investments, which improved by 0.04 percent to P499.80, and BDO Unibank, which slipped by 0.88 percent to P113.