The local stock market will look for positive cues from early corporate earnings reporters this week, typically starting with banks, even as sentiment remains dampened by a public works corruption scandal.

“Rate cuts alone won’t reignite growth. Without stronger governance, swift resolution of the Floodgate scandal, and more effective fiscal spending, economic momentum will remain weak,” said Reyes Tacandong & Co. Senior Adviser Jonathan Ravelas.

Until then, he warned the market to expect continued currency softness—potentially sliding to ₱59–₱60—and limited upside in equities, with the PSEi likely capped at 6,100 and vulnerable to dips toward 5,000–5,500.

“Policymakers must prioritize restoring public trust and accelerating fiscal execution. Investors should stay cautious, hedge currency risks, and watch for signs of political and fiscal clarity before re-entering risk assets,” Ravelas noted.

Meanwhile, online brokerage 2TradeAsia.com said, “The Fed edges toward easing with a 25bps cut widely anticipated at the October 28-29 FOMC meeting, alongside signals that quantitative tightening could wrap up in early 2025 as reserves stabilize.”

“We note that individually, messaging from Fed officials remains divided (quarter-point moves vs pushes for a sharp -50 bps), amid sticky inflation and softening jobs data.

“This indecision amplifies global uncertainties, particularly in emerging markets, where the International Monetary Fund forecasts emerging market growth at 4.2 percent for 2025 amid tariff threats and fiscal strains,” it added.

However, the brokerage said the short run is supported by benign local inflation, paving the way for a projected 25bps cut in December to 4.50 percent.

With rates falling,2TradeAsia.com advises investors to favor resilient plays to harness near-term rate relief “but be reminded that volatility rewards the vigilant; trim risks, hunt value.”

For stock picks, both Abacus Securities Corporation and Unicapital Securities Inc. favor Apex Mining as gold prices continue to rise.

“We feel confident enough, as long as gold stays above $,300 an ounce, that Apex can comfortably reach earnings of ₱9 billion next year which would be an earnings per share of ₱1.59.

“Using a multiple of nine times, the stock should at least be valued at ₱14.30....We believe Apex is the only gold miner with significant upside based on fundamentals,” the brokerage said.

Meanwhile, Unicapital Research Analyst Peter Louise D. Garnace said “We upgraded our target price driven by higher average selling price (ASP) assumptions for gold and silver.

“This revision led to a 31 percent average increase in our 2025 to 2026 estimated earnings per share forecast,” he said adding that, with Apex trading at nine times price to earnings ratio, its single digit PE remains at a steep discount compared to OceanaGold’s 30 times PE which is “unwarranted in the context of industry-leading 2025 return on equity of 27 percent.