Manila Bulletin
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The Stock Market
Local stocks brace for Maynilad IPO, inflation, economic growth data
Business
The Stock Market
Local stocks brace for Maynilad IPO, inflation, economic growth data
Local stocks brace for Maynilad IPO, inflation, economic growth data
Published Nov 3, 2025 12:00 am
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Updated Nov 1, 2025 03:54 pm
Stock market investors will focus on a data-heavy week, with trading cues centered on the release of inflation and economic growth figures and the highly anticipated listing of Maynilad Water Services Inc. shares following its massive initial public offering (IPO).
However, Philstocks Financial Research Manager Japhet Tantiangco warned that “Bearish sentiment continues to dominate the local market as downside risks continue to press on while positive catalysts are yet to be seen. Investor confidence remains weak as seen in the anemic value turnover.”
With the local market remaining undervalued and trading at a discount to its peers, he said there may be episodes of bargain hunting this week, especially after two straight weeks of decline.
“For the market’s general direction, however, we expect investors to take cues from our upcoming macroeconomic data. Investors are expected to look towards our third-quarter gross domestic product (GDP) data to know how the local economy has been.
“A growth slower than the government’s 5.5 percent to 6.5 percent target for the year may weigh on the market,” said Tantiangco.
Investors may also look at the upcoming S&P Global Philippines Manufacturing PMI and the country’s labor market data, as these would also give clues on the strength of the local economy.
Also, anticipated is the Philippine October inflation data, as this would provide clues on the direction of both aggregate household consumption and the BSP’s policy rate.
“An inflation print within the BSP’s 1.4 percent to 2.2 percent range forecast, especially one biased to the lower end, may give the market a boost.
“Next week, investors are also expected to track the local currency. An appreciation of the Peso against the US Dollar is expected to help the market move upwards, while a depreciation is seen to drag the bourse,” said Tantiangco.
Meanwhile, 2TradeAsia.com said the PSEi, after falling to the 5,900 level, will try to retest the 6,000 psychological barrier in the near term but will be pressured by the Maynilad IPO and listing that could siphon liquidity and cap any quick rebound.
“We continue to favor defensive tilts ahead of third quarter earnings season; quick trades may layer in dips toward 5,800 for opportunistic entries if the index fails to keep to 6,000,” the brokerage said.
For stock picks, COL Financial Chief Equity Strategist April Tan has a BUY rating for Bank of the Philippine Islands, which fell recently with most of the other banks due to concerns that lower interest rates would negatively impact net interest margins.
“However, looking at BPI’s third quarter earnings, the bank continued to improve margins despite lower rates, most likely due to the growing share of higher margin consumer loans. It is also very cheap, currently trading at only 1.1 times its book value BV,” she noted.
Meanwhile, Abacus Securities Corporation is recommending a slow accumulation of Ayala Corporation shares as it is currently “trading at its cheapest since before 1990 and maybe even since it listed in 1976.”
“We don't think Ayala deserves to trade as low as it currently is. And given how bad the market is, further de-rating can't be ruled out. Nevertheless, for young investors with longer horizons (i.e. patience), slow accumulation near current levels is justified,” it added.
For Unicapital Securities Research Analyst Jeri R. Alfonso, Robinsons Retail still deserves a BUY rating with a strong upside as core results remain aligned with their projections.
“We believe RRHI is well-positioned to hitch a ride on the holiday consumption on moderating inflation and stable labor conditions,” she said, adding that the stock is trading at a deep 59 percent discount to its 10-year historical average, one of the steepest discounts in the consumer space.