PSEi hints at renewed optimism
After a year of investor “apathy,” the capital index is showing early signals of renewed optimism on cooler inflation, clearer policies and cheap valuations at the beginning of 2026.
With the Philippine Stock Exchange Index (PSEi) witnessing a “lackluster performance” in 2025, particularly in most parts of the second half due to political noise and corruption mess, the market may set up its footing amid expectations of stronger economic growth support, according to trading platform 2TradeAsia.
Even as the flood control corruption scandal and depressing economic data spoiled market sentiment late last year, the local bourse started 2026 strong. The PSEi jumped above the 6,100 mark on the first trading day — its strongest finish in three months.
In its report, 2TradeAsia said that while local sentiment remained “fragile” given the strings of setbacks, the market is finding its confidence in “the convergence of stabilizing inflation + transmission of aggressive monetary easing cycles…”
The Philippines’ proposed funding for the year, hitting P6.79 trillion, also shows “measured expansion.”
“While corruption probes in late 2025 dampened confidence, a pivot toward efficient fiscal execution should act as a floor for industrial and consumer demand…,” it added.
2TradeAsia likewise said attractive valuations, even cheaper than regional peers, could help pull back investors into the market.
Rastine Mercado, China Bank research director, said the upward move from Friday could continue in this week’s sessions.
“We may see stronger selling pressure towards the 6,150-6,220 level. If the index is able to push above this key resistance area and is accompanied by stronger volumes, then we could see the PSEi revisit the 6,300 level,” he said in an email.
