By Lourdes O. Pilar, Researcher
SHARES OF PLDT, Inc. declined last week after the federal government disclosed that more foreign telecommunication corporations are looking for to enter the Philippine market, raising concerns about stronger competition.
“The stock can have come under pressure following disclosure from the Department of Information and Communications Technology (DICT) that a Japan-based telecom company is trying to enter the Philippines, raising expectations of heightened competition,” Unicapital Securities, Inc. Equity Research Analyst Peter Louise D.C. Garnace said in an e-mailed reply to questions.
The Pangilinan-led telecommunication company was the 11th most actively traded stock last week, with 633,230 shares valued at P728.74 million changing hands from June 1 to five.
PLDT shares closed at P1,142 each on Friday, down 0.6% from every week earlier. The stock also lagged behind the broader service index, which rose 9.5%, and the benchmark Philippine Stock Exchange index (PSEi), which climbed 2.9%.
12 months up to now, PLDT shares have fallen 9.4%, underperforming each the service sector’s 29.9% gain and the PSEi’s 1.9% decline.
Last week, the DICT said a Japanese telecommunication company is exploring entry into the Philippine market. The agency added that applications from two US-based satellite providers are in advanced stages.
The agency said the Japanese company is a full telecommunication operator offering each satellite and terrestrial services, even though it declined to discover the firm because discussions remain at an early stage.
The entry of more foreign telecommunication corporations follows the enactment of the Konektadong Pinoy Act, which opened the info transmission sector to more players by removing the congressional franchise requirement for qualified operators.
The DICT has said seven other foreign corporations have expressed interest in entering the Philippine market after the implementing rules of the law were released.
“The competitive landscape has intensified with the continued expansion of the country’s third telecommunication operator, which has been steadily gaining subscribers and investing aggressively in its 5G infrastructure,” Jeff Radley C. See, head trader at Mercantile Securities Corp., said in a Viber message.
He said the growing competition could force each PLDT and Globe Telecom, Inc. to proceed increasing network investments to guard market share, potentially affecting margins and returns.
PLDT can be facing broader economic risks, analysts said.
Mr. Garnace said tensions within the Middle East and the chance of elevated inflation could slow consumer spending, including demand for connectivity services.
Philippine inflation eased to six.8% in May from 7.2% in April, in line with the Philippine Statistics Authority, even though it remained significantly higher than 1.3% a 12 months earlier.
Despite the pressure on its shares, analysts said PLDT continues to learn from its large subscriber base and network coverage.
The corporate can be banking on wider 5G adoption to support revenue growth at wireless unit Smart Communications, Inc.
“As of the primary quarter of 2026, 5G adoption continues to achieve momentum, with 5G device users rising 34% 12 months on 12 months to 12.2 million, accounting for 20% of Smart’s subscriber base,” Mr. Garnace said.
PLDT reported first-quarter consolidated revenue of P54.91 billion, up 2.8% from a 12 months earlier, while attributable net income slipped 1.7% to P8.87 billion.
Mr. Garnace said PLDT’s shares might get well this week after trading at oversold levels. He placed immediate support at P1,120 and resistance at P1,180 per share.
Hastings Holdings, Inc., a unit of PLDT Useful Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.