PSE president says political issues hurting investor sentiment

Philippine Stock Exchange (PSE) President and CEO Ramon Monzon stated that political controversies and corruption investigations are negatively impacting investor sentiment and causing the local stock market to decline.

Monzon explained that the ongoing corruption scandal and related investigations are the primary drivers of the current downtrend in the stock market, characterizing it as a sentiment issue.

The PSE index has experienced a decline, falling from 5,822.85 in April to 5,997.6 in September.

Despite these market challenges, Monzon asserted that the Philippines' economic fundamentals remain strong, supported by robust corporate earnings.

He highlighted that earnings for companies listed on the index increased by nearly 17 percent in the first half of the year.

Monzon also pointed to the positive effect of the new CIMEPA law, which reduced the stock transaction tax from 60 basis points to 10 basis points, leading to a 30.4 percent increase in trading volume in July compared to the 2024 average.