While early signs of recovery are emerging in the local stock market, meaningful reforms and credible governance will be needed to fully restore investor confidence, according to an investment banker.
Investment and Capital Corp. of the Philippines (ICCP) president and COO Manny Ocampo said the Philippine stock market stands at a critical juncture, shaped by political uncertainty, elevated interest rates and governance concerns.
Ocampo said that restoring investor confidence, however, depends less on short-term volatility and more on decisive leadership, institutional reform and credible corporate leadership, and good governance.
When investors see that the government is serious and that institutions are held accountable, they will come back to the market with longer-term commitments, Ocampo said.
‘Investors want to see government and corporate leaders taking decisive action. Reforms, if implemented swiftly, can calm public discontent and uncertainty, and send the right signals to both local and foreign investors,’ he said.
‘Ultimately, governance and leadership confidence matter more than the daily headlines. The key is consistency and follow-through in action,’ he added.
Ocampo, however, said value turnover has improved and fund managers have started visiting Philippine corporates in preparation for their 2026 investment programs.
‘If we see more of these visits, it means the Philippines is back on their radar. That’s often the first step before allocations flow in,’ he said.
With interest rates easing, Ocampo said that corporates are also returning to bonds and project finance.
‘But we’re also seeing greater interest in real estate investment trusts as a way to unlock liquidity from mature assets. Amendments being considered by regulators for the REIT framework could make the asset class even more attractive,’ he said.
Ocampo expects upcoming equity offerings to serve as a litmus test for market appetite.
‘High-profile initial public offerings (IPOs) such as Maynilad, and potentially large names like GCash or SM REITS in the future, will be closely watched. Strong results from these could bring investors back in droves and restore momentum to the market,’ he said.
Retail investors are likewise expected to return with the arrival of compelling new IPOs, with Ocampo saying that Filipino investors will go where the returns are.
He said that if new names emerge and governance is credible, retail would be back alongside institutions.
For Ocampo, renewable energy and infrastructure are seen as key drivers of long-term equity upside, providing sustainable growth in revenues and profitability.
‘Digital technology remains attractive, but unlike infra and renewables, it often comes with higher volatility depending on the business model and risk appetite,’ he said.
Ocampo said that Philippine markets, though challenged, remain resilient and poised for growth provided reforms translate into concrete action and both government and corporates maintain transparency and accountability.