Philippine Stock Market (PSEi) is Asia-Pacific’s Worst Performer

James Ryan Jonas

Are your stock investments currently in the red? You’re not the only one.

In fact, the Philippine stock market has already lost 17% of its value from the start of January until June 2018, making it the worst performer among 15 stock exchanges in the Asia Pacific.

During the trading on Thursday, June 21, the Philippine Stock Exchange index (PSEi) suffered another big loss, plummeting 2.25% in just one day and closing at 7,098.15 points. This level represents a huge 21.5% drop from the all-time high level (9,041.15 points) of the PSEi recorded in January 2018.

To be fair, majority of Asian stock markets are also reeling from losses. Twelve (12) out of 15 stock exchanges registered negative year-to-date (YTD) returns. (See list below)

PSE is Asia-Pacific’s worst performing stock market

The PSEi, unfortunately, was hammered the most. In just 6 months, Philippine stocks have already declined by almost 2,000 points. This current level translates to a 17.06% price loss in the 6-month period.

Bloomberg News reported that, from January to June 2018, a staggering $43 billion in market value (equivalent to P2.3 trillion) has already been wiped out in the Philippine stock market.

At its current level, the PSEi valuation is pegged at 15.3x projected 12-month earnings — relatively cheap — but the market is said to still test in the coming days whether another sell-off will occur, breaking the 7,000 price support, or a rebound will finally emerge.

Performance of 15 Asia-Pacific Stock Exchanges

Here’s a summary of the year-to-date (January to June 2018) returns of 15 stock markets in the Asia Pacific region.

1University of the CordillerasBaguio City97%309317
2University of BaguioBaguio City89%258287
3Ifugao State University - Main CampusLamut88%295334
4Cagayan de Oro College - PHINMA Education NetworkCagayan de Oro85%281327
5University of MindanaoDavao City80%335414
5University of ManilaManila80%247305
6Araullo UniversityCabanatuan City77%415534
7University of Mindanao - TagumTagum City73%326442
8Cordillera Career Development CollegeLa Trinidad71%254353
8PLT CollegeBayombong71%192269
9PHINMA University of IloiloIloilo City69%235336
10Nueva Ecija University of Science and Technology - MainCabanatuan City68%199289
10Lipa City CollegesLipa City68%177259
11University of CebuCebu City67%230343
11Isabela State University - Cauayan City CampusCauayan City67%164244
12Bulacan State University - Main CampusMalolos City66%180271
13Western Mindanao State UniversityZamboanga City65%188286
14Naga College FoundationNaga City64%189291
14Holy Cross of Davao College Davao City64%129201
15Urdaneta City UniversityUrdaneta City61%135218
15Southway College of TechnologySan Francisco61%135218
16Mountain Province State University Bontoc60%319526
16Taguig City UniversityTaguig City 60%289481
17University of Northern Philippines ViganVigan City 59%345577

It appears that only three stock markets are in positive territory: Pakistan, India, and Taiwan. All other stock markets are in the red, ranging from -0.32 YTD loss of Japan’s Nikkei 225 index to the -13.04% YTD loss of the Shanghai Stock Exchange (SSE) index in China.

Data source: Bloomberg (as of June 21, 2018)

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James Ryan Jonas teaches business management, investments, and entrepreneurship at the University of the Philippines (UP). He is also the Executive Director of UP Provident Fund Inc., managing and investing P3.2 Billion ($56.4 Million) worth of retirement funds on behalf of thousands of UP employees.