Philippine stocks poised for rebound with spending and earnings growth

Philippine stocks, Asia’s worst-performing market since Donald Trump’s election, are poised for recovery as higher domestic spending and corporate earnings bolster investor confidence. The Philippine Stock Exchange Index, down 10% since November, could climb over 20% by year-end, analysts predict.

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Maybank Kim Eng’s Kervin Sisayan expects a 26% rebound, citing strong economic growth into 2025. Despite fears of trade wars and a strong dollar driving foreign investors away, catalysts like potential interest rate cuts and increased election-related spending could revive the market, said Rizal Commercial Banking Corp.’s Michael Ricafort.

Earnings optimism adds to the momentum. Morgan Stanley and Citigroup forecast robust growth, especially in the property sector. Unicapital Securities’ Wendy Estacio-Cruz predicts the index may hit 8,000 this year, reflecting a 23% rise.