Manila: Below-target output of the Philippine economy in 2025 led to a negative close of both the Philippine Stock Exchange index (PSEi) and the peso on Thursday. The Philippine Statistics Authority (PSA) has reported a 3-percent output of the domestic economy in the fourth quarter of 2025, slower than the previous quarter's 3.9 percent, attributed to a confluence of factors such as weather disturbances, corruption issues in government infrastructure projects, and global economic uncertainties.
According to Philippines News Agency, for 2025, gross domestic product (GDP) slowed to 4.4 percent, lower than the government's 4.8-5 percent target, and the 5.7 percent recorded in 2024. These dampened investors' sentiments, resulting in the 2.08 percent drop of the local bourse's main index to 6,223.36 points. All Shares also fell 1.36 percent to 3,548.03 points. Most of the sectoral gauges also ended in the red, namely Financials, 2.49 percent; Property, 2.47 percent; Services, 2 percent; Holding Firms, 1.52 percent; and Industrial, 0.70 percent. Only the Mining and Oil index gained during the day, rising 1.17 percent.
Volume reached 1.34 billion shares amounting to PHP7.55 billion. Decliners led advancers at 124 to 75 while 56 shares were unchanged. 'The market was also weighed by the depreciation of the Peso which resulted from the Fed's (US Federal Reserve) decision to keep their policy rates unchanged,' a report by Philstocks Financial Inc. said, referring to the Federal Open Market Committee (FOMC) decision after its two-day meeting held Jan. 27-28. The Fed's decision, which held steady the Fed Funds Rate between 3.5-3.75 percent, was made after U.S. monetary officials noted the 'solid pace' of economic activity and that inflation expectations 'are well anchored.'
Meanwhile, the local currency weakened to 58.94 per US dollar after appreciating to 58.74 in the previous session. It opened stronger at 58.78 versus Wednesday's 58.85, improved to 58.75 mid-session, but later slipped to 58.85. The day's average was 58.88, while volume fell to USD1.33 billion from USD1.46 billion a day earlier.
