The Philippine Stock Exchange index (PSEi) declined on Monday, dragged down by investor concerns over stagflation and persistent economic challenges. The benchmark index fell by 0.8% to close at 6,200.45, as traders weighed risks of slowing growth coupled with elevated inflation.
Market analysts pointed to rising consumer prices and weak manufacturing data as key factors fueling stagflation fears. "The economy is facing a difficult balancing act," said one analyst. "Inflation remains sticky, while growth momentum shows signs of cooling."
Sectors such as property and banking saw notable losses, with investors shifting to defensive positions. The Philippine peso also weakened against the US dollar, adding to the cautious sentiment.
Economic pressures have been exacerbated by global headwinds, including geopolitical tensions and supply chain disruptions. Domestically, the central bank's continued tightening cycle has raised borrowing costs, further straining businesses and consumers.
Despite the downturn, some analysts see potential for a rebound if inflation eases in the coming months. However, near-term outlook remains subdued as markets await clearer signals on economic policy direction.