PSEi may stay at 6,000 level as year winds down

PHILIPPINE STOCKS may stay above the 6,000 line on Friday, with trading activity expected to be light amid the holidays and as investors remain cautious on prospects for 2026.

The bellwether Philippine Stock Exchange index (PSEi) edged up by 0.01% or 0.65 point to end at 6,041.91 on Tuesday, while the broader all shares index rose by 0.03% or 1.23 points to 3,447.53.

Philippine financial markets were closed on Dec. 24-25 for the Christmas holidays.

“The PSEi ended in the green after late buying pressure emerged toward the close. Sentiment was also buoyed by seasonal factors and remarks from Finance Secretary Go, who expressed confidence that the economy will be back on track by the first quarter of next year,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Finance Secretary Frederick D. Go has said he is confident the economy will be back on track by the first quarter once individuals linked to the flood control scandal are swiftly prosecuted. In a Dec. 18 briefing with reporters, Mr. Go said government revenues may rebound in early 2026, depending on the swift resolution of cases related to the corruption mess.

Economic managers have conceded that the 5.5%-6.5% target for the year is now unreachable after the third-quarter gross domestic product print slumped to a four-year low of 4% amid the ongoing flood control controversy.

For the last trading days of 2025, the PSEi may continue to test the 6,000 level, Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“On a positive note, the local market is still holding its position above the 6,000 level. However, trading has been tepid, reflecting tepid market confidence,” he said.

“In the remaining trading days of the year, investors are expected to move based on their view of the local economy’s outlook for 2026. But since growth outlook is tempered due to the current headwinds that we are facing, and there are no catalysts seen as of the moment that could re-accelerate growth, we may not see that much from the local market for the remainder of the year.”

AP Securities, Inc. Equity Research Analyst Shawn Ray R. Atienza said in a Viber message that investors may be risk-averse and simply take positions amid the absence of fresh leads and lingering concerns over the outlook for the Philippine economy.

“On the other hand, bargain-hunters and risk-seekers could add fresh names or existing positions and double down on bets with reasonable risk-to-reward ratios,” he said.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said trading volumes may be low as 2025 winds down, although the market could get some support from year-end window-dressing by investors. — Alexandria Grace C. Magno