The market landscape and investment opportunities suggested by the 2025 PSEi chart

The Philippine Stock Exchange (PSEi) in 2025 faced an especially challenging environment within Southeast Asia. Starting the year at 6,052.92 points, the market closed 7.29% lower than the 2024 year-end close of 6,528.79, marking the most difficult year since the pandemic. Looking at the PSEi chart, in November it adjusted down to 5,584.35, updating a five-year low.

The background of the market downturn is multifaceted. Domestically, corruption suspicions surrounding flood control funds weighed on investor sentiment, and economic indicators also revealed weakness, with Q3 GDP growth limited to just 4%. Meanwhile, foreign investors continued to net sell throughout the year, recording a total capital outflow of 47.13 billion pesos. Additionally, the Philippine peso continued to trade at historic lows.

However, signs of gradual improvement are emerging.

S&P Global assigned a BBB+ rating in November, and the Philippines gained tariff exemptions for agricultural products from the US, which are expected to accelerate economic activity. The interest rate cuts by BSP (Philippine Central Bank) and the US Federal Reserve in December also serve as support for the market’s downside.

In this environment, Globe Telecom is worth watching. The company has transitioned from a mere telecommunications carrier to a diversified business in finance, healthcare, and technology.

Clear diversification strategy

Globe Telecom’s subsidiary, Mynt, operates GCash, which has become the Philippines’ first $5 billion unicorn with over 6 million merchants supporting its cashless payment platform. There is considerable upside potential for its IPO. Additionally, the company has multiple growth engines, including remote healthcare via KonsultaMD, startup investments through 917Ventures, and data center operations through partnerships with ST Telemedia Global Data Centres.

Strong financial foundation

The company maintains a dividend payout ratio of 70–76% of core net profit, offering a dividend yield of 5.42–5.8%. In 2024, it achieved record sales and EBITDA margins, demonstrating cost management capabilities. It is also recognized for ESG performance, with an AA rating from MSCI ESG Ratings and nine consecutive years on the FTSE4Good Index.

Its advantage in 5G networks is clear: the postpaid “Platinum” plan offers premium benefits including airport lounge access and medical insurance. The GFiber plan bundles Disney+ and KonsultaMD remote healthcare, providing high-speed home internet up to 1.5Gbps.

Risks cannot be ignored

Competition from PLDT’s enterprise and fixed broadband divisions, as well as new entrants like DITO, pose challenges. Some analysts also point out that valuation premiums driven by fintech assets could make GCash’s growth rate more sensitive to stock price movements.

Evaluation as a transformed company

While the market is in a correction phase, Globe Telecom remains one of the few companies continuing to grow by balancing traditional telecom operations with new digital businesses. In an environment where the entire PSEi chart is testing lower levels, the valuation of companies that have completed structural business transformation is approaching a point where their relative value will be recognized.