More twists, turns await stock market next year

FEARLESS FORECASTS, TOP PERFORMERS, KEY TRENDS

- By Richmond Mercurio

While threats and uncertainties abound, prospects for the Philippine stock market remain upbeat for next year after a 2024 filled with twists and turns.

The local market kicked off 2024 relatively strong, starting the year at the 6,500 level, then slowly climbing its way above the 6,900 level until the early part of April.

However, things went downhill from there as the benchmark index reached a 2024-low of 6,158.48 on June 21.

The market eventually regained its footing and touched the 7,000-mark for the first time for the year with a 7,024.67 finish on Sept. 12.

It stayed resilient and managed to stay above the 7,000 level until the early part of November, with the Philippine Stock Exchange index (PSEi) reaching its highest level not only for 2024 but also in almost five years at 7,554.68 on Oct. 7.

China Bank Capital Corp. managing director Juan Paolo Colet said 2024 was another rollercoaster ride for the local stock market.

"We had two significant rallies that fizzled out. The rally in the first quarter gave way to a steep selloff as the (US) Federal Reserve delayed its interest rate cutting cycle and geopolitical tensions flared in the Middle East," Colet said.

"Then the second rally from late June to early October was mostly wiped out by the reelection of Donald Trump in the US," he said.

Colet said that 2025 presents a complicated picture for the local market.

"While we remain positive about the growth prospects of the Philippine economy and the earnings strength of many listed companies, we approach 2025 with caution as there is a lot of uncertainty around Trump 2.0," he said.