PSE Index Tumbles 2.20% as Rate-Hike Fears Weigh on Market

The Philippine Stock Exchange (PSE) index tumbled 2.20%, or 126.30 points, to close at 5,610.39 on Thursday, with the benchmark ending at its intraday low as selling pressure intensified.

The Philippine Stock Exchange (PSE) Index, October 8, 2026

The decline came amid rising concerns about inflation and interest rates. Philippine inflation accelerated to 7.2% in September from 6.1% in August, according to the Philippine Statistics Authority.

The Bangko Sentral ng Pilipinas (BSP) raised its target reverse repurchase rate by 25 basis points to 5.0% in September, and expectations of further rate increases have weighed on market sentiment.

Market heavyweight International Container Terminal Services Inc. (ICTSI) plunged 5.93% to ₱841.50.

The services sector fell 4.86%, the biggest decline among the PSE's major sectoral indices. Mining and oil dropped 3.43%, financials declined 1.43%, property fell 1.02%, industrial slipped 0.09%, and holding firms lost 0.06%.

Value turnover was boosted by a large block transaction involving Manila Electric Co. (Meralco) shares. San Miguel Global Power Holdings Corp. agreed to sell about 1.9% of Meralco to Metro Pacific Investments Corp., the Pangilinan-led company, in a transaction valued at approximately ₱12.4 billion.

The special block sale was priced at ₱580.99 per share. Market breadth remained negative, with 112 losers against 73 gainers, while 67 shares were unchanged.