Philippine stocks fell Thursday as markets climbed for two days and feared the country’s fiscal health.
The Philippine Stock Exchange Index (PSEI) fell 0.52% or 33.24 points to close at 6,291.85, while the broad all-stock index fell 0.57% or 21.61 points to 3,743.03.
“The local market has declined as investors make profits after a two-day rally,” Japhet Louis O. Tantianco, research manager at Philstocks Financial Inc. said in a VIBER message.
He added: “As the government’s outstanding debt is expected to reach P19.06 trillion by the end of 2026, there are concerns about the outlook for the Philippines’ fiscal situation.”
The expenditure budget and financing sources for 2026 show that the outstanding debt of the National Government (NG) is expected to increase by 9.78% from the end of 2026 to the end of 2026, up from the 2017.36 billion estimate to 119.06 trillion.
Finance Minister Ralph G. Recto said NG debt is still manageable, noting that by 2026, the economy will be worth about 31.8 trillion yuan.
As of June, the Philippines’ outstanding debt reached Pesos 17.27 trillion, from P15.48 trillion in the same month of 2024.
This brings the highest proportion since 2005 to a gross domestic product (GDP) ratio of debt to box office to 63.1%. This exceeds the 60% debt versus GDP threshold that multilateral lenders believe can manage economies.
“Today, some investors may have already made profits after a series of uptrends in the index,” Regina Capital Development Development Corp. Luis A. Limlingan said in a Viber message.
“In addition, investors may still be waiting for the stock market news that could affect the overall market development, as well as the upcoming PSEI rebalancing,” he added. The rebalancing will take effect on August 18.
The sector index ended Thursday. Services fell 2.42% or 56.03 points to 2,259.55; property retreats 1.02% or 24.97 points to 2,413.58; holdings fell 0.64% or 34.63 points to 5,302.24.
Meanwhile, industrialists climbed 0.38% or 34.23 points to 8,961.63. Finance rose 0.09% or 1.97 points to 2,152.02; mining and oil rose to 9,330.87 at 0.09 points.
Mr Tantiangco said: “Jollibee Foods Corp. is the highest index earner, climbing to P220.
Value turnover fell to 8.41 billion P8.41 billion shares on Thursday, exchanging from 100.61 billion shares, and 893.5 million shares traded on Wednesday.
The market breadth is negative, as the number of rejecters exceeds 106 to 84 progressivers, while 46 names remain unchanged.
Net foreign purchases fell to 100.92 million p100.92 million from pesos 973.04 million on Wednesday. – Revin Mikhael D. Ochave
