The Philippine Stock Exchange Index fell to 5629, its weakest level in several months, extending a slide driven by foreign outflows and lackluster domestic sentiment. Average daily turnover has dropped below ₱9 billion as traders scale back exposure to cyclical sectors such as property, banking, and manufacturing.
BDO Securities attributed the weakness to deteriorating corporate earnings and persistent risk aversion. Even traditionally defensive stocks like utilities and telcos have not been spared. Analysts said the market’s current valuation of just nine times forward earnings reflects deep pessimism about near-term growth.
Foreign investors have been consistent sellers for four straight weeks, moving funds to stronger Asian markets like Indonesia and India. The Philippines, they argue, lacks momentum and clarity on fiscal reforms.
For small investors, the current downturn is testing patience. Retail traders who entered the market during the pandemic are now grappling with losses. Yet some fund managers see opportunity in the gloom, noting that several blue chips are trading at steep discounts to book value.
The market’s fate depends on whether confidence returns soon. Without fiscal clarity and faster project spending, even historically undervalued stocks may continue to languish.