Growth, Confidence and Policy Shifts
Here’s a recap of last week’s (ending July 18) market activity from First Metro Securities.
Property news
Ayala Malls expansion. Ayala Corp. (AC) has increased its mall renovation and expansion budget to P17.5 billion, targeting the addition of 700,000 sqm of gross leasable area (GLA) over the next five years to strengthen its retail footprint.
Township development. Phinma Corp. (PHN) has infused P300 million into its subsidiary PHINMA Properties, which will be used to finance the development of the 21-ha Saludad township in Bacolod City. This aligns with the company’s growth strategy in emerging urban hubs.
Institutional confidence. Century Properties Group (CPG) received a major boost from the Social Security System (SSS), which acquired a 6.4 percent equity stake through a P500-million block sale. The investment reflects renewed institutional confidence in the company, whose stock has surged by approximately 70 percent year-to-date.
Economic news
Fuel price adjustment. Motorists are advised to prepare for an increase in fuel prices this week. Gasoline is expected to rise by 30 to 50 centavos per liter, while diesel may increase by 70 to 90 centavos per liter, driven by resilient global demand and upward trends in international oil markets, according to the Department of Energy.
Minimum wage hike in MM. The Department of Labor and Employment (DOLE) has reminded employers that the P50 daily minimum wage increase in Metro Manila took effect on July 18, 2025. The adjustment raises the daily minimum wage to P695 for non-agriculture workers and P658 for other sectors, translating to an estimated P1,100 to P1,300 increase in monthly earnings for affected employees.
Trade negotiations with the U.S. With only two weeks remaining before a critical deadline, Philippine industries are intensifying efforts to secure reduced tariffs from the United States. This comes amid growing pressure from recent trade deals struck by Indonesia and Vietnam, which secured garment export duties of just 19 to 20 percent, posing competitive challenges for the Philippines’ $1 billion textile sector.
Balance of payments. The country’s balance of payments (BOP) recorded a $226-million surplus in June 2025, reducing the year-to-date deficit to $5.6 billion—a 3.5 percent improvement from the same period last year. The improvement was attributed to foreign currency deposits by the national government, investment income of the Bangko Sentral ng Pilipinas, and sustained inflows from remittances, borrowings, and portfolio investments, despite a lingering trade deficit.
Growth in financial system resources. As of May 2025, the total resources of the Philippine financial system expanded by 6.16 percent year-on-year to P34.099 trillion. Banks accounted for nearly 83 percent of the total, led by universal and commercial banks with P26.202 trillion. Notably, thrift banks posted the fastest annual growth at 21.86 percent.
Debt sustainability outlook. The Department of Finance has assured the public that the country’s rising debt service ratio, recently flagged by the Asian Development Bank Institute (ADBI) as surpassing 10 percent of national income in 2023, remains manageable. Authorities cited ongoing fiscal consolidation measures and strategies aimed at ensuring that economic growth continues to outpace debt accumulation.
Official population count. Through Proclamation No. 973, President Marcos formally declared the Philippines’ population at 112.73 million as of July 1, 2024, based on the 2024 Census. The annual population growth rate slowed to 0.80 percent, attributed to lower fertility rates, increased COVID-19-related mortality, and reduced migration flows.
Philippine Stock Market
The Philippine Stock Exchange Index (PSEi) closed marginally higher at 6,303.72, gaining 8.17 points (+0.13 percent), as investors took cues from favorable economic indicators that helped temper concerns over the health of the U.S. economy. Sentiment was further lifted by optimism surrounding the upcoming bilateral meeting between President Ferdinand Marcos Jr. and U.S. President Donald Trump, scheduled for July 20 to 22.
Market participation improved, with value turnover rising by 10 percent to P7.35 billion. Foreign investors contributed to 46 percent of total trades but closed as net sellers with an outflow of P237.82 million.
