The Philippine Stock Exchange Index fell 3 percent last week to 5,584, marking its lowest level in months as corruption allegations involving top officials added to existing economic anxieties. The market is now down nearly 15 percent for the year.
Investors turned defensive, rotating funds into power, utilities, and telecom stocks. Meralco gained 7 percent, Globe rose 9 percent, and PLDT jumped 11 percent, while property and gaming shares slumped. Bloomberry Resorts fell 14 percent, Aboitiz Equity Ventures dropped 11 percent, and Alliance Global lost 9 percent.
Foreign buying slowed to just ₱273 million, a steep drop from ₱4.5 billion the previous week. Analysts said sentiment deteriorated as investors awaited a clear response from the government to the ongoing graft investigation.
BDO Securities advised maintaining a defensive stance, favoring companies with strong cash flows such as consumer staples and utilities. Real estate investment trusts with solid yields were also recommended as buffers against volatility.
Market analysts said the decline reflects not only corporate earnings concerns but also a deeper erosion of trust. “The numbers are no longer the issue. It is credibility and governance,” one strategist said. Until those issues are addressed, the market is likely to remain subdued.