The local stock barometer failed to sustain its hold at 6,000 level on Thursday, falling anew on profit taking and as worries on the economy persisted.
The Philippine Stock Exchange Index (PSEi) lost 0.59 percent, or 35.57 points, to end at 5,969.13.The broader All Shares Index also dipped by 0.24 percent, or 8.54 points, to 3,538.11.
The financial counter suffered the biggest blow, dropping by 2.21 percent.
Only the holding firms posted gains among the key sectors.
‘The PSEi closed lower as investors locked in gains from the previous session,’ said Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp.
‘Sentiment also softened amid caution over Fitch’s recent warning on potential risks to the Philippines’ credit standing. The concern raised added pressure as markets weighed its possible impact on economic performance,’ he added. Political jitters
According to Fitch Ratings, unending political woes, further fired up by multibillion-peso corruption scandal linked to flood control projects, will remain a ‘significant risk’ to the credit rating of the Philippines until next year.
The impact on investor sentiment and public spending was already felt in the latter part of 2025, with the third-quarter economic growth logged as the slowest expansion in four years. If the social tensions continue, Fitch warned that they ‘can become more of a drag on growth as confidence among foreign and domestic investors suffers.’
The Philippines currently holds a BBB rating from Fitch-above the minimum investment grade-with a ‘stable’ outlook. However, given the issues at present, the country may fail to reach its dream of getting an ‘A’ rating this 2025.
Sluggish spending
Another factor dragging investor confidence was the drop in government expenditures, said Philstocks financial research manager Japhet Tantiangco.’The local market dropped as investors digested the Philippine government’s October budget position data, which posted a decline in both public revenues and expenditures,’ he said. Puregold Price Club Inc. and SM Investments Corp. were the index leaders, both climbing 2.96 percent.DigiPlus Interactive Corp., meanwhile, was the main index laggard, falling 4.64 percent, despite its announcement about a new payment option.