THE PHILIPPINE Stock Exchange index (PSEi) may approach the 7,000 mark this 12 months, supported by falling rates of interest, regular economic conditions, and regulatory reforms, in line with the Investment & Capital Corporation of the Philippines (ICCP).
ICCP President and Chief Operating Officer Manny Ocampo said he’s “cautiously optimistic” concerning the market but warned that full-year 2025 corporate results could trigger short-term volatility.
“We’re cautiously optimistic for the market, perhaps taking a look at the PSEi hitting 7,000 for 2026, bearing no big negative surprises,” he said in an announcement on Tuesday.
The PSEi closed at 6,052.92 on Dec. 29, 7.3% lower than the 6,528.79 close on Dec. 27, 2024. Nonetheless, the benchmark index recently staged a robust rebound, rising 1.52% or 97.72 points to six,487.53 on Jan. 15, its highest finish in six months. The broader all-share index also gained 0.68% or 24.76 points to three,660.7.
Mr. Ocampo said the recent rise within the PSEi reflects a “catch-up” phase compared with regional peers, noting that market momentum could construct further barring major external shocks.
He also noted that slower business activity in certain sectors and unexpected disruptions may lead to temporary swings.
From a macroeconomic perspective, 2026 is anticipated to be a 12 months of consolidation, he said, with inflation projected by the Bangko Sentral ng Pilipinas (BSP) to speed up to three.2% before cooling to three% in 2027, gross domestic product growth forecast at 5.5%-6.5%, and rates of interest set for one more 25-basis-point (bp) reduction.
The BSP on Dec. 11 delivered a fifth straight 25-bp reduction in benchmark rates of interest, bringing the policy rate to an over three-year low of 4.5%. It has lowered borrowing costs by a complete of 200 bps since its rate cut cycle began in August 2024.
“Starting this 12 months, we are going to see numerous the renewable energy projects coming online. That ought to have a positive impact on energy costs overall,” Mr. Ocampo said, citing the continuing shift toward non-fossil fuel energy.
Regulatory reforms are also expected to supply a lift to the market.
Recent changes to real estate investment trusts (REITs) rules expand eligible income-generating assets beyond traditional offices and malls to incorporate tollways, water systems, data centers, telecom towers, and other infrastructure, the ICCP noted.
The Securities and Exchange Commission (SEC) has also prolonged reinvestment deadlines and strengthened disclosure and governance requirements.
The Philippines currently has eight listed REITs covering offices, hotels, malls, land, renewable energy, and infrastructure segments, including AREIT, Inc., DDMP REIT, Inc., Filinvest REIT Corp., RL Business REIT, Inc., MREIT, Inc., VistaREIT, Inc., Citicore Energy REIT Corp., and Premier Island Power REIT Corp.
Along with REITs, ICCP is monitoring potential initial public offerings (IPOs) this 12 months.
The PSE is targeting 4 potential listings this 12 months, doubling last 12 months’s two IPOs.
Firms which are eyeing going public, in line with the exchange, include electronic wallet platform GCash and PNB Holdings Corp.’s planned listing by means of introduction.
On Tuesday, the PSEi went down by 1.31% or 84.92 points to shut at 6,352.86, while the all shares index declined by 1.02% or 37.39 points to complete at 3,606.81. — A.G.C. Magno