The Philippine Stock Exchange index (PSEi) retreated 4.52% week-on-week (w/w) to close at 5,956.33 (-282.13 points), weighed down by the recent MSCI quarterly index rebalancing. Foreign investors were net sellers throughout the week by PHP 7.1 billion as they reduced exposure to the Philippines.
The Bangko Sentral ng Pilipinas (BSP) also announced a 25-basis-point hike, bringing the policy rate to 5% amid heavy inflation concerns. The rate differential with the US has widened to 125 bps, though the peso continued to weaken, closing the week at PHP 62.31 against the US dollar.
We expect the local bourse to trade sideways with an upward bias this week, as investors selectively position into names trading at a discount following the completion of the MSCI quarterly index rebalancing, with bargain-hunting likely to lend the index some support.
Sentiment, however, remains vulnerable to renewed US-Iran strikes, which should keep investor caution elevated globally. Crude prices extended their climb amid the conflict, with Brent and WTI settling at USD 91.32 and USD 86.64 per barrel, respectively. Attention will turn midweek to the domestic inflation print, which should set the tone for rate expectations into the following session.
Resistance: 6,230/6,300
Support: 5,995/6,000
The PSEi declined by 4.5%, or 282.13 points w/w, to close at 5,946.33. The index experienced a sharp sell-off last week and is currently trading below its key moving averages (20-day, 50-day, 100-day, and 200-day averages), signaling a bearish technical outlook.
The MACD continues to trend downward, indicating persistent negative momentum. However, the RSI has fallen to 30.30, approaching oversold territory and suggesting that a technical rebound may be possible in the near term.
Accumulating stocks as the index rebounds is recommended to confirm bullish reversal.
Apex Mining Co., Inc. (APX) | BUY | CONSENSUS TARGET PRICE: PHP 23.00
Apex Mining Co., Inc. (APX) delivered strong 1H 2026 results, with net income rising 68.2% year-on-year (y/y) to PHP 5.4 billion. Consolidated revenues grew 35.2% y/y to PHP 12.8 billion, driven by higher realized gold prices and the depreciation of the Philippine peso against the US dollar.
Despite a 14.1% y/y increase in production costs, robust revenue growth more than offset cost pressures, resulting in a 691-basis-point expansion in gross margin to 62.4%.
Accumulate APX at current levels at PHP 16.26. Take profits at PHP 17.89 and set stop loss limits below PHP 15.4.
Maynilad Water Services, Inc. (MYNLD) | BUY | CONSENSUS TARGET PRICE: PHP 24.16
Maynilad Water Services, Inc.’s (MYNLD) 1H 2026 net income grew by 14% y/y to PHP 8.51 billion, in line with consensus estimates. Revenue increased by 4.1% y/y to PHP 19.11 billion, driven by higher billed volume and operational gains.
Meanwhile, EBITDA rose by 7.5% y/y to PHP 13.70 billion, resulting in an EBITDA margin improvement to 71.7%, supported by improved Non-Revenue Water (NRW) levels. Accumulating at PHP 18.30 is advisable. Take profits at around PHP 21.00 and set a stop loss at around PHP 16.47.
Nickel Asia Corp. (NIKL) | BUY ON BREAKOUT | CONSENSUS TARGET PRICE: PHP 5.53
Nickel Asia Corp.’s (NIKL) consolidated 1H 2026 earnings surged 93.3% y/y to PHP4.06 billion, ahead of consensus estimates, driven by higher nickel ore prices, robust shipment volumes, and a favorable USD/PHP exchange rate.
Revenues from saprolite and limonite ore sales climbed 45.3% y/y to PHP 15.39 billion, supported by a 22.6% y/y increase in weighted-average ore prices to USD 29.25/wet metric ton (WMT) and a 10.2% y/y rise in nickel ore sales volume to 8.65 million WMT. EBITDA expanded 66.9% y/y to PHP 8.68 billion on stronger operating leverage.
Accumulate NIKL once it breaks above its near-term resistance at PHP 4.29 to confirm a bullish reversal. Take profits at PHP4.72 and set stop loss limits below PHP4.07.
