PSEi down as BSP raises inflation outlook

The Philippine Stock Exchange Index (PSEi) ended lower on Friday as investors turned cautious amid rising inflation expectations and lingering global uncertainties.

The benchmark PSEi declined by 0.19 percent or 11.37 points to close at 5,972.83, extending its recent downtrend.

Philstocks Financial research manager Japhet Tantiangco said market sentiment was weighed down by concerns over inflation after the Bangko Sentral ng Pilipinas (BSP) raised its 2026 inflation forecast to 5.1 percent from 3.6 percent. This was during an off-cycle policy meeting held last Thursday.

Tantiangco said investors also remained on edge due to the uncertain duration of the Iran war, which continued to fuel volatility in global markets.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the PSEi ended the week relatively flat as persistent geopolitical conflicts and local currency depreciation continued to weigh on investor sentiment.

“Risk appetite remained subdued, leading to selective buying and generally cautious trading activity. Market participants largely stayed on the sidelines, awaiting clearer signals on global developments,” Limlingan said.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the PSEi declined for a fourth straight week, slipping by 45.79 points or 0.8 percent. This was slightly steeper than the previous week’s 40.32-point or 0.7-percent drop.

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Trading activity was subdued, with net value turnover reaching only P4.94 billion.

Meanwhile, mining and oil stocks lagged, dropping 0.72 percent.

Market breadth was nearly even, with 92 advancing issues slightly outpacing 91 decliners.