Investment Ideas: August 26, 2025

Here is our report for today, August 26, 2025, with some insights into various investment opportunities.

Here are some key highlights:

• Bond Market Overview: Dollar-denominated bonds offer yields ranging from 4.613% to 5.183%, with maturities between June 2026 and April 2035. Peso-denominated bonds present higher yields, from 5.230% to 6.120%, for maturities stretching from November 2025 to January 2039.
• Stock Recommendations: We have upgraded a holding company to OVERWEIGHT as a result of robust performance from its banking business and increased shipment volume for its tobacco business. A real estate company has been downgraded to a NEUTRAL rating because of the significant price rally that compressed dividend yield. Meanwhile, we have an UNDERWEIGHT recommendation for a holding company whose gaming business showed weak earnings trajectory amid policy uncertainties.
• Spotlight: Earnings growth from the Philippine Stock Exchange index (PSEi), excluding SMC, was behind market expectations at only +3.7% for both 2Q 2025 and 1H 2025. While some companies performed well, most fell short and would likely lead to earnings downgrades. Gaming sector earnings plunged, down 120% in 1H 2025, while ports performed best, with a 20% uptick in core net income in the same period.

Download our report here for details.