By Jomarc Angelo M. Corpuz, Special Features and Content Writer
Investors and traders are always on the lookout for different classes of assets and strategies that could make up their winning portfolios. However, amidst global uncertainties and shifting market dynamics, Filipinos building their portfolios must have resilience in mind — balancing risk and reward while staying adaptable to economic shifts.
On Feb. 26, executives from Unicapital Group and BDO Securities Corp. shared their insights on the said topic during the recent BusinessWorld Insights forum themed “Stock Market Outlook 2025.”
Unicapital Group SVP for Investment Banking Pamela Victoriano went through her observations regarding the market last year and gave her expectations for the Philippine Stock Exchange (PSE) in 2025.
Ms. Victoriano cited high inflation, high interest rates, a globally weakening economy, and geopolitical tensions as key factors that shaped the market’s underperformance last year. She also mentioned that Unicapital expects the PSE to hit 7,800 by the end of 2025 on the back of an expectation of about a 10% corporate earnings growth for PSE-listed companies and a 30 times price-to-earnings ratio.
“Opportunities continue to persist. We are cautiously optimistic, we feel that the fundamentals for the Philippines are still there, and this represents good long-term growth prospects for the country. Unfortunately, it’s just not reflected in the market performance at the moment,” Ms. Victoriano said.
BDO Securities Corp. Head Trader Jasper M. Jimenez — Photo by Jayson John Mariñas
Meanwhile, Jasper M. Jimenez, head trader of BDO Securities Corp., revealed the steps in building a winning portfolio that can take advantage and benefit from the Philippines’ projected economic growth of 6% for 2025.
He emphasized the importance of setting objectives hinged on the conditions of the investor and the situation of the market on a given time frame. This is essential as it will be the basis of every decision that an investor can make on their portfolio. Mr. Jimenez also highlighted planning as crucial in building a resilient and well-balanced portfolio. This involves assessing the risks, the condition of the economy, and the companies one is looking at, along with exploring asset classes that they might want to invest in. Finally, he explained the difficulties of implementing a plan, whether to buy or to sell an investor’s assets.
“Based on experience, selling is more difficult when it comes to investors because you sell for two reasons: to make a profit or to take the hit because you want to cut losses and prevent further downside on your investments. So, it’s key to always have a plan when to take profits and when to take losses,” Mr. Jimenez added.
Shield against inflation
With inflationary risks being one of the primary concerns of investors in 2025, the panel discussed how to mitigate them.
Unicapital Group SVP for Investment Banking Pamela Victoriano — Photo by Jayson John Mariñas
Ms. Victoriano noted that the market is in the middle of high interest rates, which leads to investors locking in these high rates with the goal of helping protect against inflationary effects. Mr. Jimenez suggested that investors can diversify and fill their portfolios with different asset classes that can lead to a stable annual yield.
The ideal portfolio
The panel also discussed what the ideal investment portfolio should look like in the Philippines.
“We saw how analysts… are very positive in the Philippine economy. So, how are we, as investors, [going] to take advantage of it and keep money from those prospects? One is to have a way of buying or holding on to stocks that could appreciate,” Mr. Jimenez said.
In Ms. Victoriano’s perspective, it largely depends on the investor’s risk profile. According to her, there are a lot of good opportunities in 2025 both on the debt market and the equities market that could pay out good dividend yields.
“While everybody is fearful, it actually could be a potentially good time to accumulate and see the results from this moving forward,” Ms. Victoriano added.
However, even as investors look for opportunities in the local market, lingering fears of a global recession continue to cast a shadow over investment decisions. Ms. Victoriano believes that while the market is low already, investing in the Philippines can still offer attractive long-term opportunities due to the underlying fundamentals of the economy.
Mr. Jimenez still expects growth in the global economy for 2025 despite its projected slowdown. He also expects high growth on the Philippine market. While the market in the Philippines is currently depressed in terms of pricing, Mr. Jimenez thinks that foreign investors will soon appreciate efforts by both the private and public sector, which could lead to increased prices.
In today’s unpredictable market, resilience in one’s portfolio is an advantage in itself that could lead to better yields and protect from uncertainties. Investors who approach this year with a well-balanced strategy — grounded in diversification, disciplined planning, and a keen awareness of economic fundamentals — will be best positioned to ensure that 2025 becomes a year of strategic gains rather than missed potential.
