PHILIPPINE SHARES plunged to a near 11-month low on Wednesday, with the main stock benchmark sliding to the 5,600 range, with fears of a renewed spike in inflation as the Middle East conflict stays unresolved prompting investor caution.
The Philippine Stock Exchange index (PSEi) dropped by 1.03% or 58.92 points to close at 5,679.48, while the broader all shares index declined 0.74% or 23.75 points to 3,179.08.
This was the PSEi’s worst finish in over 10 months or since it ended at 5,584.35 on Nov. 14, 2025.
“The market found no respite on Wednesday, with the PSEi breaking below its 5,700 support and falling to its lowest level since November 2025. Concerns over reaccelerating inflation, amid wage and fare increases and the looming El Niño threat, may have further weighed on sentiment,” COL Financial Group Research Analyst Denise Joaquin said in a Viber message.
She said this puts the PSEi at risk of revisiting its next support at the 5,580 range. “(T)he index remains under pressure… although valuations remain depressed and the market is already in oversold territory.”
“The local index ended lower, falling to the 5,600 level and reaching its lowest point for the year. Market sentiment remained cautious following the Bangko Sentral ng Pilipinas’ (BSP) warning that inflation could accelerate to as high as 7.4% in September. This further weighed on investor confidence amid concerns over the potential implications for monetary policy and economic growth,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Philippine inflation may have quickened in September as bad weather pushed up food prices, fuel costs surged and the peso weakened, the BSP said on Wednesday. Inflation likely settled between 6.4% and 7.4% last month, from 6.1% in August and 1.7% a year earlier, it said.
If the estimate holds, September will snap four straight months of easing inflation. At the upper end of the forecast, inflation would be the fastest in three-and-a-half years. At the lower end, it would be the quickest in four months and match June’s pace.
The Philippine Statistics Authority will release September inflation data on Oct. 6.
Five of the six sectoral indexes closed lower. Services slid by 1.84% or 58.03 points to 3,092.38; financials sank by 1.29% or 23.06 points to 1,771.21; mining and oil dropped by 1.21% or 239.71 points to 19,558.01; industrial retreated by 0.61% or 45.09 points to 7,340.99; and property declined by 0.11% or 1.84 points to 1,746.33. Holding firms bucked the downtrend, rising by 0.21% or 8.73 points to 4,092.91.
Decliners outnumbered advancers, 106 to 74, while 71 names were unchanged.
Value turnover jumped to P9.1 billion on Wednesday with 749.44 million shares traded from the P5.39 billion with 750.38 million issues on Tuesday.
Net foreign selling went down to P950.67 million from the P973.48 million previously. — Alexandria Grace C. Magno
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