First Metro Securities Brokerage Corporation (FirstMetroSec) is optimistic about the Philippine stock market in 2025, forecasting a strong recovery driven by improving economic conditions, supportive policy actions, and long-term growth prospects.
In an online market briefing, “Trader’s Playbook 2025: BUY the Early Cycle Winners,” FirstMetroSec’s research team, in collaboration with the Ateneo Center for Economic Research and Development (ACERD), discussed the key investment trends shaping the upcoming year.
Reuben Mark Angeles, FirstMetroSec’s equity research head, highlighted that with inflation easing, positive economic data, and more accommodative monetary policy, the Philippine market is primed for a rebound. The brokerage firm anticipates the Philippine Stock Exchange Index (PSEi) will hit 7,600, with a target range of 6,600 to 8,600. This projected growth will be fueled by factors such as potential stock transaction tax cuts, an improved credit outlook, and rising domestic consumption in the lead-up to midterm elections.
The Luzon Economic Corridor—an initiative involving the Philippines, the US, and Japan, with Clark, Pampanga at its core—presents a significant long-term growth opportunity. This trilateral economic project is expected to bolster investor confidence and capitalize on the country’s strategic position.
Despite global risks, FirstMetroSec remains confident in the resilience of the Philippine economy, bolstered by its domestic-driven growth model, robust reserves, and strong ties with the US. While the policies of the Trump administration introduce uncertainties, FirstMetroSec notes that market valuations have already factored in these risks.
Dr. Ser Percival Peña-Reyes, ACERD director, projected GDP growth of around 6 percent, driven by solid economic fundamentals. He emphasized the importance of investment-led growth, warning against excessive reliance on election-driven spending. Maintaining inflation within the Bangko Sentral ng Pilipinas’ target range of 2-4 percent will further support economic stability.
Estella Dhel Villamiel, institutional research head at FirstMetroSec, identified key investment themes for 2025, including early-cycle recovery stocks, midterm election-related investments, and AI-driven companies poised for growth.
With 2025 ushering in new opportunities, FirstMetroSec’s senior vice president, Mhelvin Abajon, encouraged investors to remain agile and ready to capitalize on the emerging trends in the coming year.
FirstMetroSec continues to provide valuable market intelligence and insights to Filipino investors, helping them navigate the evolving market landscape and make informed investment decisions.
