Philippine Stocks Slide into Bear Market Amid Global Headwinds, Disappointing Economic Data
Philippine stocks plummeted for a fifth consecutive session, dragging the benchmark index into a bear market as concerns mount over potential global headwinds and weak domestic economic data.
The Philippine Stock Exchange Index (PSEi) plunged 4% on Friday to 5,862.59, extending its losses to more than 20% below its October high and marking its lowest closing level since October 2022.
The decline was fueled by the prospect of higher US tariffs threatened by President Donald Trump, dampening investor sentiment globally. Additionally, a government report released Thursday revealed that the Philippine economy grew slower than analysts' expectations in the fourth quarter, weighed down by sluggish investment, consumption, and farm output.
"The continuing weakness is likely being underpinned by the lack of a positive catalyst," said Rastine Mackie Mercado, an analyst at Chinabank Securities in Manila. "Investors are also awaiting the release of fourth-quarter and full-year company earnings reports."
The weaker-than-expected economic growth data and uncertainties surrounding President Trump's policies further weighed on investor sentiment, said Claire Alviar, an analyst at Philstocks Financial in Manila.
Among the biggest decliners on Friday, conglomerate San Miguel Corp. sank 20% to its lowest close since January 2016, while Alliance Global Group Inc. slid by the same amount to its weakest level in over four years. Of the 30 companies in the benchmark index, only two managed to end the day in positive territory.