Stocks Continue Free Fall on Konektadong Pinoy Law

Stocks extended their decline following the enactment of the Konektadong Pinoy (KP) Law, which has rattled investors over sweeping rule changes.

The Philippine Stock Exchange (PSE) Index, August 29, 2025

The Philippine Stock Exchange (PSE) index ended the month slipping another 31.62 points, or 0.56 percent, to close at 6,155.57.

Telco shares — PLDT, Globe Telecom, and Converge — fell sharply, dragging down the holding firms, industrial, and property sub-indices as the market continued to react to the KP Act.

Investor unease centers on cybersecurity provisions that give new entrants a two-year window to adopt cyber-defense measures, while vetting mechanisms for telcos via Congressional franchise have been scrapped.

PLDT slumped 5.16 percent to ₱1,159, Globe Telecom dropped 3.09 percent to ₱1,507, and Converge retreated 3.45 percent to ₱14.03.

Mining shares, however, rallied on speculative activity tied to rising gold prices amid U.S. inflation fears, lifting the mining and oil sub-index by 1.20 percent. BDO Unibank, Bank of the Philippine Islands, and Citystate Savings supported gains in financials, while Apex Mining, OceanaGold, and Philex Mining boosted the mining and oil basket.

Transpacific Broadband, NOW Corp., and EasyCall also posted gains as investors bet these players could benefit from the new opportunities opened up by the KP Act.

DICT Secretary Henry Aguda sought to calm fears, but investors appear unconvinced, noting that while legacy telcos faced strict government protocols, new entrants will not face the same hurdles.

Total turnover reached ₱6.79 billion, with market breadth bearish as losers outnumbered gainers 113 to 89.

The index fell to as low as 6,137.09 before recovering on bargain-hunting. Still, the decline of bellwether SM Investments — down 0.66 percent to ₱755 — reflected continued pessimism.

Foreign investors sold ₱246 million worth of shares out of ₱391 million in trades. Net foreign outflows reached ₱983 million, as foreign buying totaled ₱2.868 billion against ₱3.851 billion in selling.

Among significant gainers were ICTSI, China Bank, Meralco, Century Pacific Food, GT Capital, and Petron. Major losers included Security Bank, Ayala Land, SM Prime, PNB, ACEN Corp., SP New Energy (SPNEC), Monde Nissin, JG Summit, and Robinsons Land.

Unchanged were Dito CME, Emperador, Alliance Global, and First Gen.