Philippine equities start the year hot, but can they overcome scandal and slump?

[SINGAPORE] Do not let its miserable outing in 2025 fool you; South-east Asia’s worst-performing equity market – Philippine stocks – is also the region’s cheapest, which may partly explain the rally in the benchmark index last week as it crossed the 6,500 mark.

Analysts attribute the Philippine Stock Exchange Composite Index’s (PSEi) upbeat start to the year, which they say could continue in the ensuing months, to two key factors – an undervalued market and robust corporate fundamentals.

The key index is up 8.3 per cent this year in US dollar terms, suggesting it may have reached an inflexion point. On Feb 11, the PSEi hit 6,543.35 points – a level last seen more than half a year earlier in July 2025. It closed at 6,407.15 on Thursday.