The Philippine Stock Exchange Index (PSEi) has fallen to its lowest level in five years, closing at 5,702.64 on November 10 and further dropping to 5,629.07 on November 11, marking a 1.29% decline amid sluggish economic activity.
Chief Economist Michael Ricafort of RCBC noted that the current level is even lower than the 5,570.22 points recorded in May 2020, during the height of the pandemic.
According to AP Securities Inc., the local equities market diverged from regional gains after reports showed foreign direct investments (FDIs) plunged 40.5% in August and 22.5% year-to-date, signaling slower growth for the rest of 2025.
Regina Capital’s Luis Limlingan added that despite “cheaper valuations” following recent GDP data, investors remain cautious due to persistent macroeconomic uncertainties.
The decline was also attributed to the aftermath of Typhoons Tino and Uwan, reduced foreign inflows, and higher fuel and electricity costs, which dampened investor sentiment and overall market confidence.