Manulife picks dividend, turnaround stock plays
Investor sentiment in the Philippines remains subdued at the start of the year, as the market continues to weigh the flood control corruption scandal and economic uncertainties, according to Manulife Investment Management.
In its 2026 market outlook briefing, Manulife said the scandal and economic slowdown kept investors cautious about capital expenditures.
“For the Philippines, the recent corruption scandal has posed some concern, but there are quality companies that pay good dividends,” June Chua, Manulife head of Asia equities, said.
“We feel that these companies would do very well in a rate cut cycle. Should we get over the political noise, sentiment will definitely change for the Philippines,” she added.
To position portfolios strategically, Chua said it would be worth looking for underperforming companies with turnaround potential in 2026, as these could rebound once conditions improve.
Meanwhile, Murray Collis, Manulife head of Asia fixed income, expects improved growth in the Philippines in the second half of 2026.
“That’s really to be supported by government spending, a more robust labor market, steady remittances and ongoing investment within the economy,” he said.
For the Philippine bond market, Murray said short-term yields may rise due to pressures from global and domestic uncertainties.
“In terms of the risks, it really relates to those global factors, such as the US tariff policy and how that might feed into global growth. For the Philippines, [risks include] the potential for weather-related disruptions in the economy,” Collis said.
Collis said the central bank was unlikely to cut interest rates further unless Philippine economic growth falls below 5 percent.
“The central bank will be really looking to balance currency stability against inflation,” he added.
The Bangko Sentral ng Pilipinas is already nearing the end of its easing cycle, with Governor Eli Remolona Jr. signaling one more rate cut in February.
The Monetary Board’s Feb. 19 meeting will come after the release of fourth-quarter gross domestic product on Jan. 29 and January inflation on Feb. 5.
Across Asia, Manulife said the outlook for equities remains constructive, while fixed income is also showing positive momentum heading into the first half of 2026.
“Looking ahead to the first half of 2026, Manulife Investment Management expects Asia to remain a key destination for investors seeking growth, income and diversification amid an evolving global landscape,” the firm said in a statement.
“While volatility and uncertainty are likely to persist, improving macro visibility and supportive policy trends are creating a more balanced environment for long-term investors,” it added.
Manulife sees resilient growth across major economies on the back of strong global demand.
“Global growth is expected to remain steady in early 2026, supported by gradual interest rate cuts, resilient corporate earnings and ongoing investment in productivity-enhancing themes such as artificial intelligence and digitalization,” Manulife said.
