Despite prevailing market uncertainties, Investment & Capital Corp. of the Philippines (ICCP) remains cautiously optimistic and projects a potential rebound in the Philippine Stock Exchange index (PSEi) to the 6,300 to 6,400 range over the coming six months.

ICCP President and Chief Operating Officer (COO) Jesus Mariano P. Ocampo said this forecast is based on expectations of “pretty decent earnings returns” from corporates in the third and fourth quarters, adding that “we’re not yet looking at a recession.”

Ocampo acknowledged the prevailing uncertainty, noting that “markets don’t like uncertainty. But once the dust settles, investors will start looking at companies with good long-term growth prospects.”

Despite commentary on the Philippine stock market’s underperformance over the past decade, Ocampo remains hopeful. “There are still good things to take a look at,” he said, pointing to opportunities for a market reset and renewed investor engagement.

Meanwhile, Ocampo said the Bangko Sentral ng Pilipinas’ (BSP) latest 25-basis-point (bp) rate cut to 4.75 percent in October is being welcomed by business leaders as a timely move to support private sector growth amid fiscal constraints and market uncertainty.

He described the rate cut as “positive” and a “proactive” move by the BSP for businesses, particularly those eyeing expansion.

“Lending rates of banks should adjust in a way that will make credit cheaper over the coming months. That’s good for businesses that are looking at expanding,” Ocampo noted.

While the BSP cited softened demand and growth outlook as part of its rationale, Ocampo emphasized the strategic role of the private sector in sustaining investments and consumption.

“Cutting rates is a way for the BSP to say that maybe the private sector could lead on consumption spending as well as making new investments,” he said, referencing the impact of recent government expenditure limitations.