MANILA, Philippines – An executive of a local investment firm expressed optimism Thursday, October 22, that the Philippine Stock Exchange index (PSEi) could recover to the 6,000-point level before the end of 2026, supported by stronger corporate earnings despite expectations of higher interest rates.
Jesus Mariano Ocampo, president and chief operating officer of Investment and Capital Corporation of the Philippines (ICCP), said the Bangko Sentral ng Pilipinas (BSP) could raise its benchmark interest rates by as much as 50 basis points before December.
Speaking on the sidelines of the ASEAN Capital Markets Forum (ACMF) International Conference in Intramuros, Manila, Ocampo said investors had already factored in a possible 25-basis-point rate increase following the Monetary Board’s policy meeting on Thursday.
However, he warned that a larger adjustment could have a different impact on market sentiment.
“If they go 50, it’s a different story,” Ocampo said.
The PSEi declined by 1.22 percent to 5,750.50 points as of Thursday noon, reflecting continued weakness in the local stock market.
Despite the decline, Ocampo remained hopeful that positive third- and fourth-quarter earnings reports from publicly listed companies could support a market recovery.
“We hope it goes back to 6,000 (by the end of the year),” he said.
Ocampo also expressed optimism about the potential recovery of GCash shares following the stock market debut of its parent company, Mynt Inc.
“We’re still hoping that GCash will recover. If it recovers, I think there’s interest again on that. There are still a lot of people being patient with GCash,” he added.
Mynt made its debut on the Philippine Stock Exchange on Tuesday, October 20, following a record Php 60.9-billion initial public offering.
As of Thursday noon, GCash shares were trading at Php 6.57 each, down 0.30 percent.
Ocampo’s outlook reflects expectations that stronger corporate financial performance could help offset investor concerns over possible monetary tightening.
