Invest Smart: Philippines Stock Market: 1-Year Performance Review

The financial and market information provided on wisemoneyai.com is intended for informational purposes only. Wisemoneyai.com is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Introduction: How Did the Philippine Stock Market Do in the Past Year?

Over the last 12 months, the Philippine stock market has gone through ups and downs, driven by inflation concerns, interest-rate expectations, and cautious investor sentiment. While there were short-term rallies, the broader market mostly moved sideways, with gains in some sectors offset by weakness in others.

The benchmark index, the PSEi, reflects this mixed performance — showing that stock picking and sector selection mattered more than simply buying the whole market.

Overall Market Performance (1-Year View)

• The PSEi is flat to slightly negative year-on-year

• The index traded within a wide range, showing volatility

• Foreign investors were selective, while local investors focused on short-term opportunities

Beginner takeaway:
A flat market doesn’t mean there are no opportunities — it means some stocks win while others lose.

Sectors That Are Moving (Winners & Laggards)

🔼 Stronger-Performing Sectors

⛏️ Mining & Oil

• One of the best-performing sectors in the past year

• Benefited from commodity-related interest and speculative trading

• Attracted active retail investors

🛎️ Services

• Showed moderate gains, driven by select consumer- and service-oriented companies

• Performance varied widely per company

Weaker or Slower Sectors

🏦 Financials (Banks)

• Mixed performance

• Some large banks lagged due to margin pressure and cautious lending outlook

🏢 Property

• Faced headwinds from high interest rates

• Slower demand affected stock prices

🏭 Holding Firms & Industrials

• Mostly flat to slightly down

• Performance depended heavily on underlying subsidiaries

Beginner takeaway:
Sectors react differently to economic conditions — diversification helps reduce risk.

Top Company Gainers (1-Year Performance)

Some stocks delivered strong gains despite the overall flat market, mostly outside the main index:

• International Container Terminal Services (ICT)

YTD Price Increase: ~+45% to +50%

        Why it led the market

• Strong global port volumes
• Peso weakness boosted dollar revenues
• Heavy foreign institutional buying
  

• JG Summit Holdings (JGS)

YTD Price Increase: ~+35% to +40%

     Why it surged

• Recovery in airline (Cebu Pacific)

• Improved consumer and industrial outlook

• Re-rating from deeply oversold levels

 📝   Best recovery play among conglomerates

• Manila Electric Company (MER)

          YTD Price Increase: ~+18% to +22%

        Why it performed well

• Stable electricity demand

• Defensive earnings profile

• Strong dividend appeal

  📝  Top defensive gainer

• Ayala Corporation (AC)

         YTD Price Increase: ~+12% to +15%

    Why it gained

• Exposure to banks, property, telco, and energy
• Improved sentiment on rate cuts
• Conglomerate re-rating

  📝  Balanced long-term blue chip

• SM Investments Corporation (SM)

        YTD Price Increase: ~+10% to +13%

Why it moved up

• Strong mall foot traffic

• Retail and banking exposure

• Considered a “safe haven” stock

📝 Consumer-led recovery play

Least-Performing Stocks (Laggards)

On the other side, several stocks struggled:

• Some small-cap and low-liquidity stocks posted steep declines

• Select banking stocks underperformed the index

• Companies sensitive to interest rates and consumer demand lagged

⚠️ Important for beginners:
Big drops don’t always mean “cheap” — they can signal real business challenges.

Least Performing PSEi Stocks (YTD 2025)

🔻 Ayala Land (ALI)

    YTD Price Change: ~-20% to -25%

Why it underperformed

• High interest rates pressured property demand

• Slower residential sales

• Rate-sensitive sector lagged market

📝 Property sector laggard

Aboitiz Equity Ventures (AEV)

    YTD Price Change: ~-15% to -20%

Why it underperformed

• Power generation margin pressure

• Mixed performance across subsidiaries

• Weaker investor sentiment toward utilities exposure

 📝  Conglomerate with cyclical exposure

SM Prime Holdings (SMPH)

     YTD Price Change: ~-12% to -18%

Why it underperformed

• Mall recovery priced in early

• Property and REIT-related concerns

• Slower upside compared to banks

📝 Consumer property lag

Union Bank of the Philippines (UBP)

     YTD Price Change: ~-25% to -30%

Why it underperformed

• Integration costs from acquisitions

• Margin pressure vs. peers

• Underperformed other major banks

📝 Weakest large-cap bank in 2025

GT Capital Holdings (GTCAP)

    YTD Price Change: ~-10% to -15%

Why it underperformed

• Auto sector slowdown

• Banking exposure lagged stronger peers

• Conglomerate discount persisted

📝 Lagging holding firm

What This Means for Beginner Investors

• A flat index highlights the importance of choosing the right sector

• High-performing stocks often come with higher volatility

• Blue-chip stocks may move slower but offer stability

• Long-term investing benefits from diversification and patience

Conclusion: Key Lessons from the Past Year

The past year in the Philippine stock market shows that not all markets move straight up — and that’s okay. While the PSEi remained mostly range-bound, mining and selected service stocks outperformed, while banks and property stocks lagged.

For beginners, the biggest lesson is simple:

📌 You don’t need to predict the market — you need to understand it.

Focus on learning sectors, managing risk, and investing with a long-term mindset. Even in a sideways market, smart and informed investors can still find opportunities.