The final trading day of 2025 ended with a subtle retreat for the main stock index, a last-minute shift as investors cautiously navigated the holiday break and a lingering uncertainty about the Philippine economy’s future.
The Philippine Stock Exchange index (PSEi) closed at 6,052.92, down 0.21% or 12.72 points. While the broader all shares index managed a slight gain, rising 0.24%, the overall sentiment pointed towards a reserved outlook.
Looking back, the year proved challenging for the market, concluding with a 7.29% decline from its end-2024 position. This marked the most significant yearly drop since the sharp downturn experienced during the pandemic in 2020.
Analysts noted the underperformance against initial expectations and compared to other regional markets. Foreign investors, particularly, demonstrated a cautious approach, offloading approximately P51 billion worth of shares throughout the year, fueled by concerns surrounding trade, economic stability, and governance.
The day itself presented a mixed picture. Early bargain hunting briefly pushed the index higher, reaching a near two-week peak, but a wave of last-minute selling erased those gains, leaving investors in a “wait-and-see” posture as 2026 approaches.
Sectoral performance was uneven. Mining and oil, property, financials, and services all experienced declines, while holding firms and industrials showed modest gains. Alliance Global Group, Inc. led the day’s advances, while SM Prime Holdings, Inc. suffered the largest drop.
Despite the overall downward trend, market activity increased, with value turnover reaching P4.29 billion on 727.82 million shares traded. However, net foreign selling intensified, reaching P168.74 million, further highlighting the cautious sentiment.
The market’s final moments of 2025 underscored a prevailing sense of uncertainty, as investors seemingly preferred to close the year with a conservative stance, awaiting clearer signals for the year ahead.
Though advancers outnumbered decliners, the final sell-off served as a stark reminder of the economic headwinds and the need for careful observation as the new year unfolds.
