Local equities market declined as investors adopted defensive posture ahead of next week’s economic growth data, erasing previous gains in session characterized by thinner trading and political uncertainty.
The Philippine Stock Exchange index (PSEi)) fell 65.34 points, or 1.02 percent, to 6,333.26 on Friday, Jan. 23. The benchmark retreated for the fifth time in six trading days, testing the 6,300 support level as lenders led the drop, while mining stocks saw a modest recovery from prior losses.
Investor sentiment was weighed down by anticipation of fourth-quarter 2025 gross domestic product (GDP) figures due next week. Market participants are seeking clarity on the economy’s trajectory as the central bank monitors inflation and global interest rate paths.
“The local market dropped as investors took a cautious stance ahead of next week's release of our fourth quarter 2025 GDP data,” said Japhet Tantiangco, research manager at Philstocks Financial.
Political developments also filtered into the trading floor as Michael Ricafort, chief economist at Rizal Commercial Banking Corp., noted that recent impeachment complaints filed against President Marcos and Vice President Sara Duterte have contributed to the “political noise.”
These maneuvers could potentially distract the administration from delivering priority reforms and maintaining governance standards, complicating the outlook for debt management and broader economic initiatives.
Despite the day’s decline, some analysts view the movement as necessary cooling period following a sustained rally that began in late December.
“We still consider it a healthy correction after gaining for most trading days since December 22,” Ricafort said.
The retreat came even as the peso showed strength against the United States (US) dollar. Luis Limlingan, managing director at Regina Capital Development Corp., attributed the decoupling to profit-taking and a shift toward near-term consolidation.
Market breadth was negative, with 119 stocks declining compared to 86 that rose, while 59 remained unchanged. Turnover slowed to 758 million shares valued at ₱6.29 billion, a decrease that signals “defensive investor stance amid lingering uncertainties,” Limlingan said.
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