Hedge fund manager turned television personality Jim Cramer once described the stock market as possessing a heartbeat: “It reacts, it panics, it calms down. It’s never dead; it’s just resting between moves.”

Philippine Stock Exchange (PSE) president and CEO Ramon S. Monzon, meanwhile, likens the local bourse to an airport — where planes are stuck in a holding pattern on the runway. “We’re waiting for the go-signal from the tower if we can take off or not,” he told the Daily Tribune in an exclusive interview.

Since assuming leadership of the PSE in 2017, Monzon has championed modernization and integration, navigating an ever-shifting investor climate. Political instability under both the Duterte and Marcos Jr. administrations, as well as the Covid-19 pandemic, has tested his stewardship. His latest challenge: the ongoing flood control corruption scandal is shaking investor confidence.

Navigating political turbulence

Monzon describes the current political noise as having a profound impact on investor sentiment. “What moves the market is [investor] sentiment. More than fundamentals, [it’s] sentiment,” he said, noting that foreign investors have been discouraged from doing business in the country due to pervasive government corruption.

He has publicly supported the creation of the Independent Commission for Infrastructure and hopes that the ongoing investigation will lead to meaningful reform and help restore investor confidence.

Beyond political challenges, Monzon also contends with misinformation. Earlier this October, reports falsely claimed the PSE had lost P1.7 trillion in valuation following the Senate Blue Ribbon Committee’s hearings on alleged “ghost projects.” The figure — cited by Securities and Exchange Commission chair Francis Lim during his speech at the Financial Executives of the Philippines (FINEX) conference — was later proven inaccurate.

Monzon clarified that the actual market loss during the three-week period in question was only P185 billion. The PSE subsequently issued a statement on 13 October correcting the record, stating that total domestic market capitalization had declined by P273.26 billion year-to-date — far less than initially reported.

Steady through the storm

Lim has since apologized for circulating the erroneous figure, while Monzon expressed support for Lim’s broader call to “[promote] transparency, good governance and investor protection.”

“Public corruption is really a governance issue,” Monzon said, drawing parallels between the Philippine and Thai markets — both possessing “good fundamentals ruined by political instability.”

Monzon is no stranger to navigating market crises. At the height of the Covid-19 pandemic in 2020, the Philippine Stock Exchange Index (PSEi) plunged 10.43 percent, wiping out roughly P700 billion in market capitalization in a single day. Trading was suspended, and within weeks, losses ballooned to P1.14 trillion. Yet, Monzon remained composed.

By 2021, the PSE rebounded, recording P234.48 billion in capital raised — a record high — led by the blockbuster initial public offerings (IPOs) of Monde Nissin and MREIT.

Positioning for a market rebound

Looking ahead, Monzon remains confident that the PSE will achieve its P186.3-billion capital-raising target for 2025. “We are doing our job as a capital raising platform,” he said, citing the upcoming IPOs of Maynilad Water Services Inc. and fintech leader GCash.

Maynilad’s P45.8-billion IPO — comprising 1.93 billion primary and 354.7 million secondary shares at a maximum price of P20 per share — is projected to be the most extensive listing in the Philippines this year.

Despite persistent political uncertainty, Monzon maintains optimism about the economy’s trajectory. “Not all is gloom and doom,” he said. “Our GDP (Gross Domestic Product) is 5.6 percent. Inflation last September was 1.7 percent. Our money managers are doing good. Corporate earnings are up about 18 percent for the first half.”

Promoting savings and financial literacy

Monzon has also emphasized the need for fiscal reform, particularly in reducing the nation’s dependence on debt-financed spending. He warned that an economy driven heavily by consumption leaves little room for investment.

“If it's consumption-based, the corollary must be true. What is the corollary or opposite of consumption? Savings. Our savings are very low. And where do investments come from? Savings,” he said.

In line with this, Monzon has championed financial literacy initiatives aimed at fostering a culture of saving and investing. The PSE is currently in talks with the Department of Education and the Commission on Higher Education to integrate a mandatory financial literacy course across schools and universities — a move he believes will help Filipinos understand the long-term value of investing and curb the culture of instant gratification.

Under Monzon’s stewardship, the PSE has navigated the market’s many panics, palpitations, and periods of rest — much like the living heartbeat Jim Cramer once described. His tenure has seen significant modernization, including the adoption of NASDAQ’s Eqlipse trading engine and the PSE’s majority acquisition of the Philippine Dealing System Holdings Corp. (PDS), bringing the country’s capital markets into a more seamless, digital era.

As investigations into corruption continue and public accountability gains traction, the political climate shows tentative signs of stabilization. For Monzon, the Philippine market — like his metaphorical airplane — is simply waiting for the all-clear.

“That's why we are waiting for the take-off signal from the tower,” he said.