The Philippine Stock Exchange index (PSEi) posted a modest rebound, up 0.86% week-on-week (w/w) to close at 6,290.35 (+53.91 points). The benchmark opened the week on a positive note as market conditions stabilized after heavy selling pressure from the August 2026 index rebalancing round.
However, the market traded sideways for the rest of the week amid a heavy flow of corporate earnings releases and economic data. Despite the July 2026 inflation coming in slightly below expectations at 6.2% (consensus: 6.4%), weaker-than-expected 2Q 2026 GDP growth of 2.3% (estimates: 2.9%) tempered overall sentiment.
We expect the market to trade sideways with an upward bias. Investor attention will remain centered on 1H 2026 earnings releases and corporate guidance, which should continue to drive stock-specific movements.
On the foreign front, improving prospects for a US-Iran trade agreement following discussions over the weekend should improve investor sentiment. The continued normalization of oil prices, with Brent and West Texas Intermediate (WTI) returning to pre-escalation levels, has led to sizeable roll-backs in gasoline (-PHP4.0-PHP5.0/liter), diesel (-PHP4.0-PHP5.0/liter), and kerosene (-PHP4.0-PHP5.0/liter) domestically, which could further support risk appetite.
Resistance: 6,350/6,400
Support: 6,170/6,200
The PSEi increased by 0.86% w/w to close at 6,290.35 (+53.91 points). The index is currently trading range-bound and remains above its 50-day, 100-day, and 200-day moving averages (MAs), indicating that the broader trend remains bullish. Meanwhile, with the index trading below the 20-day MA and the MACD remaining below the signal line, the index might experience a short-term pullback.
Accumulating select value stocks on slight pullbacks for more attractive entry points is advisable.
OceanaGold (Philippines), Inc. (OGP) | BUY ON BREAKOUT | NO CONSENSUS TARGET PRICE
OceanaGold (Philippines), Inc. delivered strong earnings growth in 2Q 2026, with net income rising 124% y/y to USD 32.7 million. The increase was primarily driven by revenue growth of 32% y/y to USD 126.9 million, supported by favorable gold and copper prices. Looking ahead, management expects greater production from the Didipio Mine in 2H 2026, driven by higher underground mining rates.
Accumulate OGP once it breaks above its near-term resistance at PHP 35.90 to confirm bullish momentum. Take profit at PHP 39.49 and set stop loss limits below PHP 34.00.
PLDT Inc. (TEL) | BUY ON SUPPORT | FMSEC TARGET PRICE: PHP 1,650
PLDT, Inc. (TEL) announced that it has filed for the initial public offering (IPO) of VITRO REIT, Inc. (VITRO), its data center arm under its wholly-owned subsidiary ePLDT, Inc. The digital infrastructure real estate investment trust (REIT) will initially comprise eight operational data centers with a combined IT load capacity of approximately 24 megawatts (MW).
Accumulate TEL at key support levels between PHP 1,200 and PHP 1,220. Take profits at PHP 1,331 and set a stop-loss at PHP 1,150. Alternatively, hold the position for up to 12 months to maximize dividend payout.
MREIT, Inc. (MREIT) | BUY | FMSEC TARGET PRICE: PHP 15.10
Megaworld Corp. (MEG) raised PHP 5.6 billion through a series of block sales of its stake in MREIT to partially fund the next phase of its township developments ahead of the REIT’s planned Wave 5 asset infusion. We view MREIT as well positioned to sustain its dividend profile, supported by the continued expansion and diversification of its asset base.
Accumulating on current levels at the 200-day MA at PHP 13.90 is advisable. Take profits at around PHP 15.20 and set a stop loss at around PHP 13.00.
