The local stock market is not expected to recover from its ongoing slump unless positive results emerge from ongoing investigations into corruption in flood control projects, according to Philippine Stock Exchange Inc. (PSE) president and CEO Ramon Monzon.
Asked on what he thinks of the market right now, Monzon said that it is ‘very bad.’
‘It reflects what is happening in our country,’ the PSE chief said.
‘The market’s number one ally is confidence – both local and foreign investors. It appears that we do not have that right now until what is happening stabilizes,’ he said.
Anomalies in the country’s flood control projects have opened the floodgates of heavy selling pressure in the PSE over the past two months.
Discoveries of substandard and ghost projects due public and private sector officials to pocketing trillions of pesos in public funds meant for flood control and infrastructure projects have led to a collapse in the local bourse.
‘Our foreign investors are selling. We’re already positive in July, then it reversed,’ Monzon said.
As of Tuesday’s closing, the Philippine Stock Exchange index has lost 426.29 points since ending at 6,379.75 on July 28, when President Marcos ordered an audit of flood control projects during his 2025 State of the Nation Address.
Analysts said the massive corruption scandal has impacted investor sentiment and outlook.
‘Hopefully, some very positive results from these investigation will come out,’ Monzon said.
‘I just hope they do a very good and credible investigation with really concrete positive results. That’s the only thing that could bring back confidence in the market,’ he said.
Monzon led the stock market contingent during the protest actions on Sept.21 where thousands gathered to demand accountability and punishment for those engaged in anomalous deals in the government and in the private sector, especially those who have pocketed trillions in public funds meant for flood control and infrastructure projects.