THE Philippine Stock Exchange index (PSEi) has dropped below the 6,000 mark, reflecting growing investor worries over the weak peso, slower economic growth and disappointing company earnings, according to COL Financial chief equity strategist April Lynn Tan.
“The drop is due to concerns about economic growth and the weak peso,” Tan said in an email interview. “It doesn’t help that many listed companies delivered weaker-than-expected results.”
The main index has been trading around 5,900 in recent days — its lowest in months. At this level, Philippine stocks are valued at just 8.9 times their expected earnings, the cheapest they’ve been in 10 years. Despite the bargain prices, investors are hesitant to buy in.
“Beyond doubt, the market is cheap,” Tan said. “However, investors aren’t in a rush to buy because earnings growth doesn’t look exciting.”
The local market has been struggling to gain momentum this year. The economy grew only 4.5 percent in the second quarter — slower than the government’s target — while the peso’s slide past P59 against the US dollar has added pressure on businesses that rely on imports.
Rising oil prices and persistent inflation have also weighed on consumer spending.
Tan said she expects the stock market to stay quiet in the next six to 12 months unless there’s a clear pickup in growth and a decline in interest rates.
“It could just stay here,” she said. “Economic growth needs to pick up, aside from inflation and interest rates staying low, for the stock market to move higher.”
For retail investors, Tan said it’s important to match investment strategy with personal goals.
“If you’re a trader looking for quick profits, this market is not for you,” she said. “But for long-term investors who can handle short-term ups and downs, now may be a good time to start bargain-hunting.”
She added that dividend-paying stocks — shares of companies that regularly distribute cash to shareholders — are attractive right now.
“Many stocks pay out dividends that can match or even beat bond yields,” Tan said. “These high-dividend stocks provide steady income and help long-term investors stay patient while waiting for the market to recover.”
Unfazed by weak market sentiment
Meanwhile, in a separate media briefing on Thursday, Nov. 6, 2025, Converge ICT Solutions Inc. said it remains focused on executing its business plans despite the PSE slipping to its lowest level in three years, reflecting weak investor confidence.
“The PSEi is at pandemic levels, but that’s really a reflection of overall investor sentiment both locally and internationally,” said Converge chief financial officer Robert Yu. “It’s not affecting us unless we plan to issue new shares or raise funds in the market.”
Yu added that Converge’s management does not focus on short-term stock price movements, emphasizing that its priority is to deliver on the board’s strategic plan and create value for stakeholders.
“Our job is to wire and provide access to all Filipinos. If investors recognize our performance, the stock price will follow,” he said. (KOC)