The Philippine Stock Exchange index (PSEi) slipped 0.84% week-on-week (WoW) to close at 5,680.35 (-48.28 points) as investors remained cautious amid concerns over persistent inflation and slowing economic growth following the Bangko Sentral ng Pilipinas’ (BSP) larger-than-expected 50-basis-point (bp) rate hike on October 22, 2026.
Early in the week, the peso’s decline to a fresh record low of PHP 64.17/USD exacerbated inflation worries, with economists now expecting a further 50 bps of hikes, which would bring the BSP’s terminal rate to 6.00%.
Later in the week, the US Federal Reserve kept its benchmark rate steady at 3.75%-4.00%, while US Q3 GDP grew 3.40% annualized quarter-on-quarter (QoQ) (Q2 2026: 2.20%). Although the PCE price index slowed to 2.10% (Q2 2026: 5.00%), the strong growth print keeps the US Fed on a hawkish footing, with a December hike widely expected, supporting the dollar. The peso pared losses, closing the week at PHP 63.74/USD.
This week we expect the local bourse to stay volatile, with an early relief bounce likely to be tested by Thurday’s inflation print. On November 2, Brent and WTI fell 7.60% and 7.40% to USD 104.77/barrel and USD 96.46/bbl, respectively, after Iran signaled openness to peace talks with the US, removing much of October’s war premium.
The relief has yet to reach the pump: today, November 3, gasoline rises by PHP 3.50/L while diesel and kerosene roll back by PHP 1.00/L and PHP 1.90/L, respectively. These adjustments reflect the previous week’s prices, so a broader rollback next week is possible if crude prices hold.
Volatility could pick up on November 4 as US midterm results (held November 3, US time) come in, with a Republican hold likely to strengthen the dollar and raise US yields. Sentiment hinges on the November 5 release of the October inflation, which consensus expects to accelerate to 7.70% y/y (Sep 2026: 7.20%), reinforcing expectations of further monetary tightening, while a downside surprise could let the market begin to price in a December pause.
Support: 5,650
Resistance: 5,760/5,830
The PSEi fell 0.84%, or 48.28 points WoW, to close at 5,680.35. The index continues to consolidate near its 20-day moving average (MA), while remaining below its key 50-day, 100-day, and 200-day MAs, reflecting a generally weak technical backdrop. Meanwhile, both the RSI and MACD suggest a lack of strong directional momentum, indicating that the PSEi may remain range-bound in the near term.
Accumulating on breakout above resistance at 5,830 is recommended to confirm bullish reversal.
SM Prime Holdings Inc. (SMPH) | BUY | FMSEC TARGET PRICE: PHP 24.00
On October 12, 2026, President Ferdinand Marcos Jr. signed Proclamation No. 1479, declaring three completed parcels of the 360-hectare (ha) Pasay reclamation (Phases 1, 2 and 4) as alienable and disposable land, reserving them for mixed-use development and granting ownership to the Philippine Reclamation Authority (PRA). We view the proclamation as a positive development for SM Prime Holdings, Inc. (SMPH), as it clarifies the land status of a potential new business district in the Bay Area.
Accumulate SMPH at current levels of around PHP 17.50-17.60. For short-term traders, take profit at the technical target of PHP 19.25 and set a stop-loss limit at PHP 16.60.
Double Dragon Corp. (DD) | BUY ON BREAKOUT | CONSENSUS TARGET PRICE: PHP 13.01
DoubleDragon Corp. (DD), through its subsidiary, Hotel 101 Global Holdings Corp., has entered the Africa market after a country-wide development agreement with Egypt’s WNTR Property & Hospitality, an affiliate of IGI Holding. Hotel101’s entry into Egypt adds another market to its growing international presence and is aligned with management’s plan to grow the brand globally.
Accumulate DD on a confirmed breakout above the PHP 11.80-11.85 resistance. For short-term traders, take profit at the technical target of PHP 13.01 and set a stop-loss limit at PHP 11.24.
MREIT, Inc. (MREIT) | BUY | FMSEC TARGET PRICE: PHP 15.10
MREIT, Inc.’s (MREIT) 9M 2026 net income rose 56.1% y/y to PHP 4.51 billion from PHP 2.89 billion, in line with consensus and ahead of our estimates. Distributable income grew 58% y/y to PHP 4.42 billion, while portfolio occupancy remained strong at over 90%, driven by newly infused assets. Additionally, MREIT declared a regular cash dividend of PHP 0.2762 for 3Q 2026 up 10% y/y, which will be payable on November 20, 2026, to stockholders on record as of November 10, 2026.
Accumulate MREIT at current levels, around the 50-day MA of PHP13.50-13.60. For short-term traders, take profit at the technical target price of PHP 14.85 and set a stop-loss limit at PHP 12.80.
