PSE sees upside despite flat 2025 profit

The Philippine Stock Exchange, Inc. (PSE) remained bullish on market activity this year despite posting only marginal profit growth in 2025, as strong trading and reforms are expected to drive listings and investor participation.

The local bourse operator said Monday that net income inched up 1.4 percent to P1.22 billion in 2025, as higher trading activity and the consolidation of its fixed-income platform lifted revenues but were largely offset by integration costs and weaker non-recurring gains.

Operating revenues more than doubled, jumping 103.3 percent to P2.84 billion from P1.40 billion, driven mainly by the consolidation of Philippine Dealing System Holdings Corp. (PDS), which added depository income and boosted trading- and listing-related revenues.

“Despite the negative impact on investor sentiment of political and economic headwinds, our markets still had commendable results. As the government continues to address corruption issues, we are hopeful that investor confidence in the market will be restored,” PSE President and CEO Ramon S. Monzon said.

Still, the exchange pointed to encouraging momentum entering 2026.

“The first two months of 2026 were bullish, and we expected higher earnings results and dividend yields to further spur trading activity,” Monzon said.

Trading activity strengthened, with equity turnover rising 19.1 percent to P1.78 trillion, while fixed-income trading at the Philippine Dealing & Exchange Corp. surged 60.8 percent to P15.91 trillion.

Listing revenues climbed 39.8 percent to P764.5 million as companies raised P144.13 billion through equity offerings, while PDS hosted 51 corporate bond listings worth P454.18 billion.

Profit growth, however, was weighed down by an 80.1 percent drop in other income to P166.2 million following the prior year’s remeasurement and associate gains. Expenses also rose 62.6 percent to P1.40 billion due to integration-related costs tied to the PDS consolidation.

According to Monzon, the geopolitical tensions in the Middle East have since prompted a risk-off stance among investors, with uncertainty likely to linger. 

“Regardless of these headwinds, we will continue to implement our strategic plan, which includes developing products and pursuing sustainability initiatives to support interest in the market. 

We likewise have upcoming technology upgrades to ensure the operational efficiency and resiliency of our platforms,” he said.

Monzon added that regulatory reforms, particularly adjustments to real estate investment trust (REIT) and initial public offering (IPO) public float requirements, could encourage more listings and attract fresh capital.

The benchmark PSEi  hit a 14-month high of 6,611.24 on 27 February, up 9.2 percent year-to-date, while foreign investors recorded net buying of P25.31 billion, reversing net selling a year earlier.