PHILIPPINE EQUITIES remained under pressure in October amid heightened volatility, as concerns over higher borrowing costs and the peso’s weakness dragged investor sentiment.
On Friday, the bellwether Philippine Stock Exchange index (PSEi) dropped by 0.44% or 25.23 points to close at 5,680.35, while the all shares index went down by 0.51% or 16.31 points to 3,178.42.
Month on month, the PSEi edged up from its finish of 5,679.48 on Sept. 30. However, year to date, it was down by 6.16% or 372.57 points from its 6,052.92 close on Dec. 29, 2025.
“The PSEi ended the month around its September closing level but remained significantly lower on a year-to-date basis, suggesting that investor confidence has yet to recover convincingly,” Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said in a Viber message.
“I would characterize October as a volatile, largely sideways month for the Philippine stock market, with intermittent bargain hunting offset by persistent concerns over inflation, interest rates and the peso.”
He said the Bangko Sentral ng Pilipinas’ (BSP) surprise 50-basis-point hike on Oct. 22 prompted investors to reassess the impact of higher borrowing costs on corporate earnings and stock valuations. “Higher interest rates also increased competition from fixed-income investments, particularly affecting rate-sensitive sectors such as property and highly leveraged companies.”
BDO Securities Corp. President John Tristan D. Reyes likewise said that headlines related to the economy weighed on the market last month, including the renewed spike in Philippine inflation, the peso’s slide past P64 per dollar, the BSP’s jumbo rate hike, oil’s surge, and weak infrastructure spending.
COL Financial Group, Inc. Research Analyst Denise Joaquin said sentiment was lackluster as rising bond yields and the peso’s decline to record lows hit trading activity.
Headline inflation returned to this year’s peak of 7.2% in September, the fastest in over three years.
Meanwhile, the peso hit a new record low of P64.17 on Oct. 27.
Despite the market’s broad weakness, Mr. Reyes said a key event last month was the listing of Mynt, Inc., the operator of mobile wallet GCash, on Oct. 20. Mynt debuted on the PSE following a P60.9-billion initial public offering, the largest in the Philippine stock market’s history.
“Company-specific developments also contributed to market volatility, particularly third-quarter earnings announcements and the landmark listing of Mynt. However, strong interest in individual companies has not necessarily translated into broader demand for Philippine equities,” Mr. Arce noted.
“Overall, October demonstrated that valuations may be attracting selective buying interest, but the market still lacks the sustained earnings momentum, foreign participation and macroeconomic confidence needed for a more durable recovery.” — Alexandria Grace C. Magno