THERE IS NO way for foreign investors to gamble in a place hosting the world’s worst stock exchange, according to an infrastructure mogul.
In a report which first came out in Bloomberg, billionaire Sid Consunji particularly hinted at the lackluster performance of the Philippine Stock Exchange (PSE) since a Marcos crony took its helm.
According to Consunji, foreign investors have already been ignoring the PSE under Ramon Monzon. Monzon is the PSE’s President and Chief Executive Office (CEO) in the last eight years.
“Foreign investors have largely stopped paying attention to the PSE, which has become one of the world’s worst-performing stock markets after eight years of Monzon. Foreign investors don’t pay attention to the Philippine stock market. The Philippine economy is weak; we can’t do anything about it,” Consunji was quoted as saying.
DIVERTING THE BLAME
Bloomberg reported that the Philippines PSE Index dropped about 17% over the last decade while many Asia-Pacific peers climbed roughly 70% owing to structural problems—limited market diversity, sluggish turnover, and a dearth of new listings, in addition to the flood-control corruption scandal that has further eroded investor confidence.”
Instead of finding ways to reverse the tide, Monzon went on to blame the market’s stagnation on sentiment, “as if the troubles began only with last June’s flood-control scandal,” Consunji noted.
At one point, Monzon – PSE president and Miss Earth Philippines organizer – pointed his fingers at the judiciary’s corruption, which enabled corruption to thrive “with impunity because there is no fear of retribution or punishment.”
“I think blame has always been put on the executive, on the legislative. But somebody’s got to look at the judiciary. You have people that have been charged with very clear evidence of, let’s say, plunder, and they get off,” 73-year old Monzon told ANC in a recent interview.
“We had the PDAF (Priority Development Assistance Fund) scam in 2014 or something. Why has it recurred, at a bigger scale, because nobody got punished for that. Only the principal perpetrator on the private side is in jail (but was recently acquitted).”
During the Trillion Peso March against corruption, Monzon led a PSE delegation at the People Power Monument.
He said he would only be satisfied if the probes (flood control scandal) lead to jail time. ”It’s the only way to prove that you’re really sincere in implementing the necessary reforms. Otherwise this scandal or this issue is going to recur. You’ve got to put the fear of God in all these grafters and punditers,” said Monzon.
MONZON’S BAGGAGE
Monzon was once in the middle of the biggest corruption cases of the Marcos years. He admitted to being a “dummy” of Imee Marcos in state-run networks RPN, IBC, and BBC during Marcos Sr.’s regime — a central allegation in the ₱102-billion forfeiture case against the Marcos family and their cronies.
Monzon cooperated with the government in the ill-gotten wealth probe and executed a 1987 affidavit admitting he fronted for Imee. However, prosecutors failed to present the original document, and Monzon did not authenticate the photocopy — rendering his testimony of little value in court.
The Sandiganbayan dismissed the forfeiture case in August 2019 for lack of evidence, including the failure to present Monzon’s original affidavit. The court said the document was “hearsay” and “cannot be accorded probative weight and value.”
With Marcos’ exile, Monzon was among those charged by the Presidential Commission on Good Government when in 1992, he struck a deal with then-PCGG chief David Castro, agreeing to cooperate with investigators to surrender ₱151 million in assets and deposits at Traders Royal Bank.
In his court testimony, Monzon said he was recruited in 1984 by Imee’s ex- husband, Tommy Manotoc, to run RPN-9, IBC-13, and BBC-2, which he initially believed belonged to crony Roberto Benedicto, until Imee began issuing orders — including directing that company funds be used for her personal expenses.
“Ramon revealed that Imee also ordered some of the networks’ funds to finance her personal expenditures, to which they willingly obliged since it was an order from the owner of the corporations and the funds were private funds of the networks,” the Sandiganbayan ruling said.
Despite his testimony, the court found the prosecution failed to prove how Monzon and other defendants ( Rafael Sison, Placido Mapa, Jr., Don M. Ferry, Jose Tengco, Jr., Generosa Olazo, Cynthia Cheong, Ma. Luisa Nograles, Leopoldo Vergara, Jose Africa and Rodolfo Arambulo) acted as Marcos dummies or benefited from behest loans allegedly ordered by the late dictator. The decision, penned by Associate Justice Lorifel Pahimna, also found no evidence linking the group to the establishment of California Overseas Bank, which was supposedly used to funnel dollars abroad.
Given all his baggage, Monzon’s jab at the courts lands with heavy irony. The man whose unauthenticated affidavit helped a major Marcos case fall apart is now blaming judges for letting corruption slide, Bilyonaryo reported.
CONFIDENCE VANISHED
Consunji says foreigners have tuned out of PSE because of “confidence deficit” resulting from Monzon’s appointment in 2017, “as investors railed against the lack of accountability in scandals such as the R&L Investments stock fraud and the Abra Mining share scam, and the PSE’s opacity in running its own affairs—including IPO pricing that tends to favor underwriters. He has done little to inspire investors to put money back into the market.”
Newly appointed Securities and Exchange Commission chair Francis Lim has likewise pointed to structural and integrity issues as central to the market’s malaise.
Nine months ago, the Bilyonaryo news channel said PSE was facing growing scrutiny and concern with its performance and leadership, that led to its consistent decline in average daily turnover, dropping from P9 billion to just P6.1 billion in 2024, while foreign transactions have increased, but foreign investors continued to offload more stocks than they have purchased.
This trend, coupled with waning local investor confidence, has led to a stagnant market, with the number of local stock accounts showing little growth. Engaging retail investors remains a challenge for the PSE, which is crucial for stimulating market activity.
HIGH-PROFILE MISCUES
Columnist Den Somera pointed to Monzon as the focal point of criticism, with many blaming his inability to drive market growth and ensure effective regulation.
Somera believes the tipping point came with a series of high-profile missteps, including the controversy surrounding Abra Mining’s unregistered share sale, which has sparked widespread dissatisfaction and further damaged the PSE’s credibility.
In his column for Rappler, Somera highlighted the Abra Mining scandal as one of the most glaring issues to have plagued the PSE in recent years. Between 2015 and 2019, the company, led by president James Beloy, issued 169.05 billion shares— far exceeding its authorized capital. These unregistered shares were sold to the public, in direct violation of PSE rules.
Although the PSE launched an investigation, it has yet to provide clear answers, leaving investors frustrated. This mishandling of a major regulatory issue only deepened concerns about the PSE’s ability to effectively oversee the market.
Somera also points to PSE’s neglect of small-cap companies. The “small board” remains underdeveloped, and family-owned businesses—often viewed as key IPO candidates—continue to avoid the exchange.
There’s also the issue of IPO pricing, which many believe has been skewed in favor of underwriters and issuers, often leaving investors with losses when stocks trade below their offering prices.
FOCUS ON SMALL CAPS
Somera said the PSE needs to focus on attracting more small-cap companies and offering a wider variety of investment opportunities. Encouraging family-owned businesses to list could be a game-changer, as these companies often bring significant growth potential.
He also suggested expanding access to IPOs for local small investors, which would diversify the investor pool and inject new energy into the market.
Without real, meaningful change, the PSE risks remaining stagnant and irrelevant. However, If it can effectively regulate the market and offer a wider range of investment opportunities — there’s still hope for a recovery.
Monzon urged big business groups such as the Philippine Chamber of Commerce and Industry (PCCI) to lead protest rallies, reminding them that “we don’t live in an ivory tower. We’re getting affected. The market’s getting weighed down by this corruption.”
Beyond rallies, Monzon is also pinning his hopes on the planned ₱34-billion Maynilad initial public offering—“probably the third-biggest” in local history—with the International Finance Corp. and Asian Development Bank as anchor investors, and the UK’s Mobilist program among cornerstone backers. “If, by the time they list, there are positive results from the ICI (Independent Commission for Infrastructure), that could help reverse the trend,” he said.
WEAK LEADERSHIP
Analysts say corruption is not the sole reason for the PSE’s woes — it’s been festering for years under his leadership, across two administrations.
Since he replaced banker Hans Sicat in 2017, the PSEi has fallen from 8,558 to around 5,900, with thin volumes, few IPOs, and persistent trust issues. Enforcement lapses, such as the ₱700-million stock theft involving Venture Securities and R&L Investments in 2019 and the Abra Mining “fake shares” fiasco, have further eroded confidence.
Critics argue that before lecturing others about integrity, Monzon should reckon with his own record — and with a PSE that has languished, not because of corruption alone, but because of years of inertia and missed reform.
They insisted that the market’s malaise cannot be blamed solely on the recent flood-control corruption scandal. It has been festering throughout Monzon’s tenure, spanning two administrations, marked by thinning liquidity, a lack of new listings, and eroding investor confidence.
For retail investors, the biggest impact of a market slump is psychological. It’s unnerving to see your portfolio balance drop, especially when headlines reinforce the fear about billions disappearing. But as long as you don’t sell, your losses remain paper losses, and they can reverse as easily as they appeared.