With the earnings season concluding on Monday, Aug. 17, local stock market investors are seen to remain cautious due to uncertainties in the Middle East, while Philippine economic growth remains sluggish and inflation is still high.

Some economic data are also seen to provide some stimulus to the market, including overseas Filipino (OF) remittances and balance of payments (BOP), as well as United States (US) housing data and the minutes of the Federal Open Market Committee (FOMC).

“Margin discipline has been the main highlight across the second-quarter earnings season. Weighted projection for listed firms point to roughly eight- to 12-percent full-year earnings growth for the year, an assumption that we see as sector-specific, rather than broad-based,” said online brokerage 2TradeAsia.com.

It noted, “The debate remains active whether the Bangko Sentral ng Pilipinas (BSP) would adopt either a status quo or start adjusting interest rates higher, possibly by 25 basis points (bps), at its next Monetary Board [policy] meeting on Aug. 27.”

“This might keep equity multiples capped, unless the US Federal Reserve (Fed) moves with more conviction on its sequel policy direction,” it added.

While there are those who expect no action by the BSP, 2TradeAsia.com said, “We feel this assumption overlooks local realities. First, inflation eased to 6.2 percent in July but remains well above the two- to four-percent target, and the peso is trading near ₱61.4 per dollar.”

“That leaves little room to exit the BSP’s current hawkish position at the 4.75-percent policy rate without risking renewed currency pressure. Our base case is a hold with very hawkish language attached, which should keep equity multiples capped until the Fed moves with more conviction, by around September,” it explained.

Thus, the brokerage advised investors to stay anchored on well-capitalized banks, high-yield utilities, or conglomerates with solid dividend track records that rival bond yields.

“Meanwhile, ride the metal momentum by selectively positioning in mining stocks backed by good fundamentals… Gold approaching previous highs, a fourth consecutive annual deficit in platinum, and a fresh record high in copper and nickel have driven roughly seven- to 10-percent surge across the metals complex very recently,” it said.

Because of this, 2TradeAsia.com said, “Commodity exposure remains a sound macro hedge here, but we reiterate it should be sized tactically rather than held as a core position.”

For stock picks, COL Financial Group Inc. recommends Wilcon Depot Inc. as its second-quarter operating performance “appears constructive despite softer gross domestic product (GDP) and household consumption growth, suggesting underlying demand remains resilient.”

The brokerage also has a BUY rating for Jollibee Foods Corp. (JFC) and said, “Given the stronger-than-expected second-quarter 2026 results, we are reviewing our estimates for potential revisions.”

“We believe JFC’s second-quarter 2026 earnings was largely top-line-driven, with resilient international growth, favorable FX [foreign exchange], and acquisition contributions providing meaningful support. While domestic demand remained soft, the resilience in domestic profitability and narrowing decline in international earnings were encouraging,” it added.