Philippine stocks slump to 5,956 as peso hits record low
The Philippine Stock Exchange index (PSEi) fell 0.8% to 5,956.33 on Friday, its lowest close in 11 weeks.
Source: BusinessWorld Philippines · August 30, 2026 at 4:01 PM · AI-assisted report
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MANILA, 31 AUGUST 2026 —
The Philippine Stock Exchange index (PSEi) fell 0.8% to 5,956.33 on Friday, its lowest close in 11 weeks.
Market Impact
The index slid 48.25 points from Thursday’s 6,004.58 finish and is now down 46 points or 0.8% from the prior week’s close. The broader all-shares index dropped 20.51 points, or 0.61%, to 3,318.99, extending a four-day losing streak that has taken it to its lowest point since June 11.
Analysts at Philstocks Financial, COL Financial Group and F. Yap Securities pinpointed three triggers: the peso’s slide to a record low of P62.265 per dollar, the central bank’s 25-basis-point increase in its policy rate to 5%, and downgrades to the country’s growth outlook by Moody’s Analytics and the ASEAN+3 Macroeconomic Research Office.
“The local market dropped by 4.52% this week—the worst weekly performance for the year,” said Japhet Louis O. Tantiangco, research manager at Philstocks Financial. He added that foreigners were net sellers for a second straight week, unloading P7.14 billion in shares and turning the market’s weekly net outflow to P7.14 billion from P2.35 billion the week before. Daily average turnover fell to P7.70 billion from P10.20 billion the prior week.
Denise Joaquin, research analyst at COL Financial Group, said the peso’s fall and month-end portfolio adjustments amplified the sell-off, while the MSCI quarterly rebalancing added to volatility as global funds reweighted their Philippine holdings.
Liam Limbo, investment analyst at F. Yap Securities, said Friday’s trading was dominated by positioning ahead of the MSCI move and the central bank’s decision. He also pointed to Dominion Holdings’ plan to list the Tampakan mining project via backdoor entry as another focus for traders.
All main sectoral gauges ended lower except mining and oil, which rose 1.91% to 20,069.88, and services, which added 0.39% to 3,131.08. Financials fell 1.78% to 1,864.47; industrials slid 1.51% to 7,905.63; holding firms lost 0.78% to 4,330.15; and property declined 0.62% to 1,866.99.
Decliners outnumbered advancers 120 to 88, with 49 issues unchanged. Turnover jumped to P18.81 billion on Friday from P7.82 billion the day before as 2.22 billion shares changed hands, compared with 1.08 billion on Thursday. Net foreign selling rose to P3.51 billion from P2.32 billion.
The Philippine market’s retreat follows Moody’s downgrade of the country’s growth outlook to 5.8% from 6.0% for 2024 and the ASEAN+3 office’s cut to 6.0% from 6.2%. The BSP’s rate hike was its third this year and lifts the benchmark to a 16-year high.
Analysts say further weakness in the peso and any signal of additional tightening by the BSP would keep pressure on equities next week.
Related: Philippine Stock Exchange · Manila