The Philippine Stock Exchange Inc (PSE) expects an improved equities market performance in 2026 supported by growing corporate earnings, attractive valuations and potential regulatory reforms following a lackluster 2025.
PSE president Ramon Monzon said the proposed amendments to real estate investment trust (REIT) rules and public float requirements for companies planning to go public would likely boost listings next year. The benchmark index fell 7.3 percent in 2025 from a year ago to close at 6,052 on Dec. 29, 2025.
“The corruption scandal, the deteriorating peso and the disappointing GDP performance for the third quarter have clouded our economy’s outlook and triggered persistent selling by foreign investors in the market this year,” Monzon said.
Monzon said listed company earnings are poised for continued growth, which makes valuations and dividend yields attractive. He said if the government succeeds in improving transparency and governance, the Philippine market could be one of the best performing in the region in 2026.
Despite the index decline, the PSE reported that total capital raised from the sale of primary and secondary shares and warrants jumped 75 percent to P144.14 billion in 2025 from P82.37 billion in 2024.
Only two companies conducted initial public offerings—Top Line Business Development Corp. and Maynilad Water Services Inc.
Eight companies conducted follow-on offerings, while 14 raised capital through private placements.
The average daily value turnover increased 20.10 percent to P7.33 billion from P6.10 billion a year earlier. Domestic market capitalization fell 6.29 percent to P13.65 trillion from P14.57 trillion in 2024. The market also posted net foreign selling of P51.78 billion for the year.
