FILIPINO investors may be better off focusing on regular investing and long-term discipline rather than trying to time the stock market, as Philippine shares remain cheap but out of favor, according to an official of a stock brokerage firm.
Speaking at the Cebu Economic Briefing 2026 hosted by the Mandaue Chamber of Commerce and Industry, April Lee Tan, first vice president, corporate strategy and chief investor relations officer at COL Financial, said many Filipinos have stayed away from stocks because the market has performed poorly for years. The Philippine Stock Exchange index (PSEi) has barely moved over the past decade, reinforcing the belief that investing in shares is risky and unrewarding.
“The stock market has not been performing — that’s what most people say,” Tan said. “It’s much easier to list reasons why you should not invest than why you should.”
The benchmark index continues to trade below pre-pandemic levels amid cautious investor sentiment, weak foreign participation and concerns over economic growth. However, Tan noted that valuations have fallen to historically low levels, with the PSEi trading at around nine times earnings — close to levels seen during past crises.
Despite this, she said investor mood is now marked by pessimism and fatigue.
“When people feel indifferent and hopeless and bad news no longer surprises them, that is usually the point of maximum opportunity,” she said.
At yearend 2025, the benchmark PSEi closed at 6,052.92 points, down 12.72 points or 0.21 percent.
PSE president and chief executive officer Ramon Monzon said the benchmark’s decline reflected broader confidence issues rather than market fundamentals alone.
“The PSEi’s decline this year is not just about numbers -- it’s about trust and confidence. The corruption scandal, the deteriorating peso and the disappointing gross domestic product performance for the third quarter have clouded our economy’s outlook and triggered persistent selling by foreign investors,” Monzon said.
The local bourse opened the first trading day of 2026 with the benchmark PSEi gaining 82.14 points or 1.4 percent to 6,135.06.
Focus on discipline
Rather than waiting for clear signs of a market recovery, Tan urged investors to build discipline by investing small amounts regularly.
She advised setting aside a fixed portion of income such as five percent or 10 percent of monthly earnings for investments, a strategy often called “pay yourself first.”
“This is not about putting all your money into stocks,” she said. “It’s about consistency. Over time, that discipline matters more than timing the market.”
Tan said many Filipinos naturally think of property as a long-term investment, but treat stocks as short-term bets. She said shares should also be viewed as long-term investments that can grow gradually.
Dividends help investors stay invested
To help investors remain invested during market downturns, Tan pointed to dividend-paying stocks.
She said cash dividends provide income even when share prices are weak, helping investors stay patient. Some investors now see high-dividend stocks as alternatives to bonds and time deposits.
“Stocks have become a proxy for fixed income for some clients,” she said.
Dividends are also taxed at a lower rate than bond interest, she noted. Cash dividends are taxed at 10 percent while interest income from bonds is taxed at 20 percent.
For investors who do not need regular cash payouts, reinvesting dividends can further grow their portfolios over time.
Market outlook
Tan said many listed companies remain profitable and financially stable, despite weak share prices. Banks continue to post healthy loan quality, while signs are emerging that pressure on the property and consumer sectors may be easing.
She added that even a small improvement in market valuations could result in strong gains.
“If earnings grow and valuations improve even slightly, that already represents meaningful upside,” she said.
Still, Tan stressed that investors should focus on managing risk, diversifying their holdings, and keeping investment sizes manageable.
“You don’t need to guess when the market will turn,” she said. “What matters is staying invested long enough to benefit when sentiment eventually improves.”
As the market remains out of favor, Tan said the challenge for investors is not finding reasons to avoid stocks, but having the discipline to keep investing despite uncertainty. / KOC