Inflation worries sink stocks to 10-month low
The Philippine Stock Exchange index dropped to a 10-month low due to investor concerns over rising inflation and potential monetary policy shifts. Market sentiment was further dampened by negative cues from Wall Street and a weakening peso.
Why it matters
Economic instability in emerging markets often reflects broader global inflationary pressures and investor risk aversion in the current financial climate.
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.
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