PSE Index Reclaims 6,000 Level, but Weak Trading Signals Market Caution

The Philippine Stock Exchange (PSE) index returned to the 6,000 level on Monday amid renewed optimism, although signs of market weakness persisted as it closed at 6,009.38, up 47.98 points or 0.80 percent.

The Philippine Stock Exchange (PSE) Index, May 25, 2026

After opening at 5,978.74 and briefly dipping by about two points, the PSEi climbed to an intraday high of 6,049.82 before profit-taking emerged, as concerns over the fallout from the Iran crisis weighed on sentiment despite initial discussions of a possible ceasefire framework.

Another concerning trading pattern was below-average market turnover and continued net foreign selling.

Even utilities stocks, traditionally considered defensive investments, declined. Meralco fell by 0.55 percent to P604.50, while Maynilad Water Services dropped 4 percent to P22.80, dragging the industrial sector down by 0.25 percent.

Market favorite International Container Terminal Services, Inc. (ICTSI) rose 1.29 percent, but trading volume reached only P559 million—well below its usual turnover of more than P1 billion—adding to cautious market sentiment.

Economists are also watching for a potential uptick in inflation as businesses begin raising prices after exhausting their usual three-month inventory supply, potentially increasing costs for consumers.

Additional pressure may come from the weakening peso, which declined to P61.75 against the US dollar, increasing the cost of imported goods and services.

Bank of the Philippine Islands and BDO Unibank posted gains, helping lift the financial sector by 1.21 percent.

Meanwhile, market bellwether SM Investments Corporation rose 0.66 percent to P612, nudging the holding firms sector higher by 0.96 percent.

The services, mining and oil, and property sectors also advanced by 0.76 percent, 0.68 percent, and 0.28 percent, respectively. One notable gainer was Haus Talk, Inc., which climbed 5.34 percent to P1.38, slightly below its intraday high.

Net foreign selling totaled P238 million, with foreign buying at P3.603 billion and foreign selling at P3.841 billion.

Market breadth remained relatively neutral, with gainers narrowly outpacing losers, 104 to 99.

Investor sentiment remained cautious amid uncertainty surrounding Middle East peace talks, particularly over Iran’s nuclear program and tensions involving the Strait of Hormuz, a critical global shipping lane.

Concerns over geopolitical risks continue to weigh on investor confidence.