PSE Index Drops 2.1% as Investors Doubt Durability of Peace Pact

Investors dumped their positions for a second straight day on Wednesday, pushing the Philippine Stock Exchange (PSE) index near its intraday low to close at 6,114.81 points, down by 130.94 points or 2.10 percent, amid doubts over the durability of a reported peace agreement.

The Philippine Stock Exchange (PSE) Index, June 17, 2026

The sell-off, driven by concerns over possible changes in the wording and implementation of the peace pact, hit even market favorite ICTSI, which fell 6.25 percent to P900 on trades amounting to P2.58 billion.

ICTSI, which on Monday surged to within P5 of the P1,000-per-share mark, posted its biggest decline since March, when it was trading at around P635 per share.

Market bellwether SM Investments likewise declined, closing at P602, down 4.9 percent.

Investors remained unconvinced that a lasting peace is achievable given differing positions among the parties involved in the negotiations.

Foreign investors reversed course and became net sellers, posting net foreign selling of P127 million on foreign buying of P4.58 billion against foreign selling of P4.71 billion.

Services led the sectoral losers with a steep 4.59 percent decline, weighed down in part by ICTSI’s losses. Holding firms, industrials, property, and mining stocks also retreated as investor sentiment weakened.

Financials posted the lone sectoral gain, suggesting investors shifted funds toward companies viewed as potential beneficiaries during periods of economic uncertainty.

BDO Unibank, the country’s largest bank by assets, rose 3.58 percent to P133, helping lift the financial sector by 1.37 percent.

Losers overwhelmed gainers, 90 to 72, while 62 issues were unchanged.

Value turnover reached P8.25 billion, about 30 percent higher than average, while foreign trades accounted for P9.14 billion as investors remained active on both the buying and selling sides.