PSEi slips to 6,200 on weak GDP, profit taking

By Alexandria Grace C. Magno

PHILIPPINE EQUITIES retreated to the 6,200 level on Monday as investors reacted to weaker-than-expected economic growth and booked profits ahead of key inflation data.

The benchmark Philippine Stock Exchange index (PSEi) dropped 0.5% or 31.89 points to close at 6,297.08. The broader all-share index fell 2.05% or 73.71 points to 3,509.52.

“The local market declined as concerns over the economy’s momentum weighed on investor sentiment following the dismal GDP (gross domestic product) growth in the fourth quarter,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

Market sentiment turned cautious after data showed the economy expanded by just 3% in the fourth quarter of 2025, slowing from 5.3% a year earlier and 3.9% in the previous quarter.

This was the weakest quarterly growth in almost five years, excluding the pandemic period, and the softest since the global financial crisis-era slowdown in 2009.

Full-year economic growth settled at 4.4%, missing the government’s 5.5% to 6.5% target and easing from 5.7% in 2024. The figures also came in below market forecasts, reinforcing concerns about fading economic momentum.

Investors also took profits after gains in the previous session, while positioning cautiously ahead of the release of January inflation data.

A BusinessWorld survey showed economists expect inflation to remain unchanged at 1.8%, keeping it below the Bangko Sentral ng Pilipinas’ 2% to 4% target.

“The PSEi ended lower amid cautious trading as investors awaited the inflation print,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said via Viber. He added that sentiment was further dampened by reports of sluggish economic growth and a sharp sell-off in precious metals.

Most sectoral indexes ended lower. Mining and oil stocks plunged 13.6%, dragging the market, while financials fell 2.62%.

Property shares declined 1.17%, industrials dropped 0.6% and holding companies slipped 0.12%. The service index was the lone gainer, rising 1.43%.

Among individual stocks, RL Commercial REIT, Inc. outperformed, climbing 4.85% to P7.57. Bank of the Philippine Islands weighed most on the index, sliding 6.61% to P115.80.

Market breadth was negative, with 128 decliners against 79 advancers, while 56 stocks were unchanged. Trading value fell to P9.11 billion from P14.58 billion in the previous session, reflecting lighter participation.

Foreign investors remained net buyers, with net inflows rising to P291.04 million from P41.01 million on Friday.

The weak growth data have heightened expectations that policymakers may need to provide support to the economy. However, investors remain wary, balancing hopes for monetary easing against uncertainty over the pace of recovery and earnings prospects in the months ahead.