The Philippine stock market stands at a critical juncture where long-term investor confidence depends less on daily volatility and more on decisive leadership, institutional reform, and credible governance, according to Manny Ocampo, President and COO of the Investment & Capital Corporation of the Philippines (ICCP).
Amid ongoing political uncertainty and elevated interest rates, Ocampo stressed that swift, concrete action from both corporate and governmental leaders is essential to signal stability to local and foreign fund managers.
“Investors want to see government and corporate leaders taking decisive action,” Ocampo emphasized. “Reforms, if implemented swiftly, can calm public discontent and uncertainty, and send the right signals. Ultimately, governance and leadership confidence matter more than the daily headlines.”
Ocampo noted that while protests and congressional probes can unsettle markets, early signs of recovery are emerging. These include improved value turnover and increased engagement from foreign fund managers as they prepare their 2026 investment programs. “If we see more of these visits, it means the Philippines is back on their radar,” he added. “That’s often the first step before allocations flow in.”
ICCP identified several key catalysts expected to drive future growth:
REITs and Capital Raising: The market is utilizing a dual track for capital raising, with bonds and project finance returning as interest rates ease. There is also heightened interest in Real Estate Investment Trusts (REITs) as a means to unlock liquidity from mature assets, a trend expected to accelerate with pending regulatory amendments.
IPOs as Litmus Tests: Upcoming high-profile equity offerings, such as Maynilad and potentially large names like GCash or SM REITs, will serve as a crucial test of market appetite. Strong results from these listings could restore momentum and bring institutional and retail investors back in “droves.”
Long-Term Equity Upside: Renewable energy and infrastructure were highlighted as the most compelling long-term themes, providing sustainable growth in revenues and profitability.
While anticipating a return of highly active retail investors alongside institutions, Ocampo cautioned against overlooking structural risks.
“The real risks we monitor are leadership credibility, corporate governance, and currency stability,” Ocampo affirmed. He concluded that Philippine markets remain resilient and poised for growth, provided reforms translate into concrete action and the Bangko Sentral ng Pilipinas continues to defend the peso effectively.
