Philippine stocks struggle as 2025 closes

Despite an upbeat start in January, capital market observers agree that 2025 was a disappointing year for the Philippine Stock Exchange (PSE) as the local bourse underperformed significantly while its regional peers rallied.

- By JAMES A. LOYOLA

The PSE index (PSEi) closed the final trading day of 2025 last Dec. 29 at 6,052.92 points, down 12.72 points, or 0.21 percent. Year-to-date, the main index shed 7.29 percent. While many analysts believe the PSEi has hit rock bottom after a battery of negative news, they expect investors to remain cautious—and even bearish—heading into 2026.

“The PSEi’s decline this year is not just about numbers—it’s about trust and confidence,” noted PSE President and Chief Executive Officer (CEO) Ramon S. Monzon.

“The corruption scandal, the deteriorating peso, and disappointing GDP [gross domestic product] performance for the third quarter clouded the economic outlook and triggered persistent selling by foreign investors,” Monzon added.

The bourse recorded a 75-percent surge in total capital raised—from primary and secondary shares and warrants—to ₱144.14 billion in 2025, from ₱82.37 billion the previous year. Despite the growth, this remained below the exchange’s ₱186-billion target.

The PSE also saw only two initial public offerings (IPOs) in 2025: Top Line Business Development Corp. and Maynilad Water Services Inc. Other capital-raising activities included eight follow-on offerings and 14 private placements.

Japhet Tantiangco, research manager at Philstocks Financial Inc., described the year as decidedly bearish.