Investors in the Philippine stock market will be watching out for news on how the mid-term elections was conducted and how the Marcos administration’s candidates fared while also waiting for the release of remittance numbers.

Rizal Commercial Banking Corporation Chief Economist Michael L. Ricafort said investors will want to see if the administration will garner strong numbers at the House of Representatives and at the Senate to get support to legislate more economic, fiscal, and other reform measures.

Philstocks Financial Research Manager Japhet Tantiangco also noted that, “investors are expected to watch out for the results of the midterm elections here at home as these would provide clues on the future of policies here in the Philippines.”

He added that, “hopes of aggressive monetary policy easing by the BSP for the rest of the year following our inflation and GDP data are still expected to provide support to the local market.

“Investors are also expected to watch out for developments with respect to trade talks with the US, with signs of progress to be taken by the market positively.’

Ricafort said investors will also be waiting for US data on inflation, retails sales, and the producer price index, as well as the University of Michigan sentiment index and consumer expectations this week.

Meanwhile, 2TradeAsia.com noted that,

“Despite first quarter GDP growth of 5.4 percent missing expectations, some upward momentum has been observed in local equities, supported by stronger-than-anticipated household consumption and favorable inflation dynamics.”

While public construction lagged, household-level consumption accelerated to 5.3 percent year-on-year likely fueled by easing price pressures and front-loaded fiscal spending ahead of the May midterm elections.

“One key takeaway from the updated data is that the GDP miss plus moderating inflation scenario is now more supportive of further rate cuts from the BSP, that is, more divergence relative to the Fed, which could underpin valuations and stimulate risk appetite in the second half of 2025,” the brokerage said.

Despite softer growth, it also noted that, “earnings thus far, particularly in consumer and banking names, have proven resilient, and with election tailwinds extending into the second quarter, the broader picture remains constructive for local risk assets.

“Monitor volume as momentum may pick up post-election once the political noise clears and fiscal visibility improves.”