Stocks turn sights on Fed

Elijah Felice Rosales - The Philippine Star October 26, 2026 | 12:00am Unicapital Inc. head of research Wendy Estacio-Cruz said trading would be thin ahead of the Fed meeting this week, especially as it would be followed by the release of US economic growth and personal consumption expenditures inflation.

Philstar.com / File MANILA, Philippines — The local stock exchange is headed to another week of vulnerability, as investors keep an eye out on another policy-setting meeting of the US Federal Reserve, though most analysts predict rates would hold. Unicapital Inc. head of research Wendy Estacio-Cruz said trading would be thin ahead of the Fed meeting this week, especially as it would be followed by the release of US economic growth and personal consumption expenditures inflation.

Further, she said investors may reorganize portfolios before the Undas break, with top of mind consideration for the recent domestic rate hike. Last week, the Bangko Sentral ng Pilipinas (BSP) increased the benchmark rate by 50 basis points to 5.5 percent. The BSP raised interest rates to make it harder to borrow, which should lower spending and soften inflation.

Estacio-Cruz said the rate hike would prove challenging for investors in highly leveraged sectors such as property. They will be pressured by cost concerns, as the peso sank to a fresh low of 63.615 to $1 last Friday. In an outlook, F.

Yap Securities Inc. echoed a similar sentiment, expecting investors to sit out of trading until the Fed makes a final call. It also recommended cutting exposure further if the benchmark Philippine Stock Exchange index (PSEi) falls below the 5,600 line. “We stay in a sit-out mode, continuing our preference toward dollar earners and well-capitalized names, and avoid rate-sensitive and budget-exposed plays,” F.

Yap Securities said. Among stock picks, F. Yap Securities said it is important to watch out how GCash’s parent Mynt Inc. would trade this week.

If Mynt tumbles below its initial public offering (IPO) price of P6.6 a piece, then it would have failed in attracting fresh capital to enter the PSEi. “We would watch whether GCASH can hold its offer price once early stabilization fades. A slide below it would weigh on appetite for the IPO pipeline the PSE is hoping Mynt would unlock,” F.

Yap Securities said. Mynt debuted last week with the largest IPO in Philippine history, generating P60.9 billion in proceeds for an opening market capitalization of P442 billion. Although the IPO helped push the PSEi until midweek, the index failed to sustain momentum, as it shed 54 points to close at 5,728.63, dragged by the BSP’s rate hike.