07.11.202503:13:45UTC+00Philippine Stocks Hover Near 3-Year Lows

The Philippine Stock Exchange Index fell by 1% to 5,776 on Friday, remaining close to its lowest point in over three years. This decline mirrors the persistent negative market sentiment caused by a significant slowdown in economic growth and a prevailing corruption scandal. The nation's GDP expanded by 4.4% year-on-year in the third quarter of 2025, a slowdown from the 5.5% increase observed in the previous quarter. This represents the slowest growth rate since early 2021, largely due to a decrease in public spending linked to an infrastructure-related corruption investigation and disturbances from consecutive typhoons. The investigation revealed an alleged conspiracy involving lawmakers, public works officials, and contractors to misappropriate infrastructure funds, resulting in substandard or incomplete projects. Concurrently, the disappointing economic data has bolstered the central bank’s argument for further interest rate reductions to stimulate the economy. Significant declines were noted in companies such as SM Investments (down 1%), Manila Electric (down 2%), and Globe Telecom (down 3.2%). Notably, Maynilad Water Services, which recently executed the second-largest initial public offering in the history of the Philippine Stock Exchange Index, remained stable on its first day of trading.