Philippine stock index falls 0.3% to 6,607.79 at open

Philippine stock index falls 0.3% to 6,607.79 at open

Philippine Stock Index Falls 0.3% to 6,607.79 at Open
February 26, 2026

The Philippine Stock Exchange Index (PSEi) opened lower on Tuesday, declining 0.3% to 6,607.79 as foreign selling pressure and macroeconomic uncertainties weighed on investor sentiment. The benchmark index remains within a projected trading range of 6,400–6,600, reflecting ongoing volatility ahead of key central bank policy decisions.

Foreign Selling Drives Decline
Net foreign selling totaled P1.36 billion during the session, exacerbating downward momentum. Investors are hedging risks ahead of the U.S. Federal Reserve's and Bangko Sentral ng Pilipinas' monetary policy announcements on December 18–19, 2024. Analysts attribute the selling to expectations of a slower pace of interest rate reductions in the U.S., which could pressure the peso and dampen capital inflows.

Economic Data and Sector Weakness
The PSEi's decline follows a series of weak economic indicators, including the Philippines' 4% year-on-year GDP growth in Q3 2024—the slowest in four years—and a 40.5% drop in foreign direct investments (FDI) to $494 million in August 2024. Large-cap stocks underperformed, with International Container Terminal Services Inc. slipping 3.65% and Bank of the Philippine Islands down 4.67%. Only the mining and oil sectors posted gains, while financials and services remained the biggest losers.

Undervaluation and Outlook
Despite the recent selloff, the PSEi trades at an 11x price-to-earnings ratio—a 47% discount to its 10-year average—suggesting potential for value-driven investments. However, analysts caution that the index could test the 6,400 support level if the Federal Reserve signals no rate cuts in its upcoming meeting.

The PSEi's trajectory remains closely tied to global monetary policy and domestic economic resilience. With mixed sentiment persisting, investors are advised to monitor central bank decisions and corporate earnings releases for directional cues.

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