More delistings at the Philippine Stock Exchange are expected this year as low share prices make it challenging to raise capital, thus making it unappealing for public companies to bear the burden of complying with stringent requirements to remain listed at the bourse.

Abacus Securities Vice President and Head of Research Nicky Franco expects fewer listed companies in 2026, as the role of publicly listed firms will shrink further this year.

“Broadly depressed valuations make it attractive to privatize (especially with lax PSE guidelines) and, at the same time, discourage new listings,” he explained.

There were three delistings of common shares at the PSE last year against only two initial public offerings. These included the giant IPO of Maynilad Water Services and the small-market debut of Top Line Business Development Corporation.

Delisting voluntarily were Keppel Philippines Holdings Inc. and 8990 Holdings Inc. while Philab Holdings Corporation was involuntarily delisted due to non-compliance with disclosure and other requirements.

Meanwhile, Asian Terminals Inc. has also announced plans to delist this year, after its public float falls below the minimum requirement following the Maharlika sovereign fund investment.

Franco added that an unexpected side-effect of the Securities and Exchange Commission’s new circular revising the reporting of beneficial ownership of entities under its jurisdiction “might reveal that some listed firms are below the minimum public ownership level.”

Stock valuations are also seen to continue being pulled down as foreign selling is expected to continue this year, partly because Philippine politics is heating up and dampening sentiment of overseas investors.

He said “A new impeachment complaint is likely to be filed against the vice president in February and may reach the Senate for trial by mid-2026. Meanwhile, a sitting senator might join a former president in the Hague. As bad as next year will be on the political front, it will feel like a walk in the park compared to the run-up to the May 2028 elections.”

Franco said foreign funds are also likely to be net sellers of Philippine equities this year because of the extended softness in the country’s gross domestic product.

However, he said foreign selling this year may not be to the extent of the $1.0 billion in outflows in 2025 (excluding a large, $125 million block sale in November), “but still sizable.”