PSE Index Falls Further Amid MSCI Rebalancing, Economic Concerns

The Philippine Stock Exchange (PSE) index declined further Friday, closing at 5,768.76 points, down 91.18 points or 1.56%, following a major rebalancing of the Morgan Stanley Capital International (MSCI) index that dragged blue-chip stocks lower.

The Philippine Stock Exchange (PSE) Index, May 29, 2026

Jollibee Foods Corporation dropped 6.14% to ₱126.90 on ₱6.1 billion in trades, while Manila Electric Company declined 4.76% to ₱570.50 on ₱4.1 billion in turnover. Market favorite International Container Terminal Services, Inc. retreated 4.15% to ₱752.50, while market bellwether SM Investments Corporation dropped 4.01% to ₱574.

Analysts warned of increasing economic uncertainty, with some raising concerns over possible stagflation — a period of slow growth accompanied by high inflation.

Industrial, holding, services, and property shares declined, while financial, mining, and oil stocks posted modest gains on bargain hunting amid continued geopolitical concerns in the Middle East.

Trading value surged to ₱26.45 billion, roughly four times the daily average, driven largely by MSCI-related transactions.

Foreign investors remained net sellers, with ₱16.37 billion in buying against ₱23.01 billion in selling, resulting in net foreign selling of ₱6.6 billion. Market breadth stayed negative, with 106 losers, 75 gainers, and 61 unchanged shares.