The market is starting the year at the 6,052.92 level of the Philippine Stock Exchange index or PSEi.  This starting point is also the best the market has achieved in 2025.  

Comparatively, it is 7.29% lower than the market’s 2024 trading close of 6,528.79, rendering 2025 as one of the most challenging years the bourse had ever experienced since the pandemic. This also ranked the market to be among the worst performing stock trading centers in East and Southeast Asia this year. (READ: Value trap: Why the PSE is one of world’s worst-performing markets)

Nevertheless, average net value turnover for 2025 has improved to P5.91 billion per day from P5.15 billion in 2024.  

In hindsight, a mix of domestic issues and global economic shifts influenced the market’s poor performance. On top among the domestic issues is the flood control funds scandal. Investor trust and confidence was severely dented by the massive extent of corruption in the flood-control projects. 

The ongoing probes showed rampant misuse of billions of pesos allocated for flood management initiatives, discovery of “ghost” projects, rampant use of substandard construction materials and construction activities, and the alleged massive cornering of contracts by a small group of favored contractors working under some political personalities. 

This scandal drove down the market to a five-year low at 5,584.35 on November 14, 2025, the market’s lowest since its 5,570.22 close on May 28, 2020. (READ: Value trap: Why the PSE is one of world’s worst-performing markets)

Investor confidence fell further after GDP grew by only 4% in the third quarter, the country’s slowest in more than four years. This also brought down the economy’s nine-month average to 5%, below the government 5.5-6.5% GDP growth target for the year. (READ: [In This Economy] When corruption drowns growth: The PH economy in 2025)

As noted earlier, foreign investors were likewise persistent net sellers throughout the year, cashing out due to governance concerns at the same time lured by higher-performing regional peers.  

The net outflows of foreign investors reached P47.13 billion in 2025, 86.6% higher than their net outflows of P25.25-billion in 2024. 

Contributing further to the market’s soft performance is the volatility of the Philippine peso. It closed at P58.79 against the US dollar and hit the all-time low of P59.22.

But towards the end of last year, the Philippines was awarded certain tariff exemptions on its agricultural products by the United States, boosting is chances for higher economic activity. 

In November, S&P Global gave the country a BBB+ credit rating on the following considerations: the country’s emerging strong economic recovery, effective fiscal policies, prudent actions by the Bangko Sentral ng Pilipinas (BSP) in keeping inflation low, ongoing reforms (like the Public-Private Partnership or PPP laws), and solid external position, which can potentially work for further upgrades as the country continues fiscal consolidation and reduces deficits, with expectations for continued high growth despite temporary slowdowns. This rating improved the market’s outlook.  

The rate cuts instituted in December by both the BSP and the US Federal Reserve further helped the market show signs of stabilization as it recovered from its low. However, its rebound was muted in the end due to lingering concerns on ”fiscal and political risks,” as expressed by most market analysts like Mark Angeles, the trading coach of First Metro Sec’s stock playbook.

Amid the advice for a defensive play, this column is going ahead with the recommendation to buy Globe Telecom (GLO), a stock pick also found among the top 10 stocks favored by Angeles and his stockbrokerage house.  

First Philippine Unicorn

Globe Telecom is an ideal investment essentially for its strong connectivity services, high dividend yields, and digital growth potential. 

As of late 2025, the company has transitioned from a traditional telecommunications provider into a company with significant interests in fintech, healthtech, and other digital solutions. 

In June 2025, Globe Telecom was recognized as the “Most Recommended Telco Brand” in the Philippines by SYNERGY/YouGov with its reportedly high performance in mobile video streaming, gaming, and voice apps.

GLO is an outright winner on its 5G network in the following experience categories: premium perks through its postpaid “Platinum” plans that offer high-end lifestyle benefits, including international and local airport lounge access, 24/7 digital concierge services, and medical insurance.

Globe’s GFiber plans provide high-speed home internet (up to 1.5 Gbps) bundled with entertainment subscriptions like Disney+ and 24/7 telehealth consultations via KonsultaMD. 

Conversely, Globe Telecom maintains a payout ratio of approximately 70% to 76% of its core net income, often maintaining a dividend yield between 5.42% and 5.8% per year. 

With its ownership in Mynt, the operator of GCash, Globe Telecom further stands out as an investment target. GCash is regarded as “the Philippines’ first US$5 billion Unicorn.” It dominates the cashless payment market with over six million partner merchants. The IPO of GCash will significantly contribute to Globe Telecom’s share valuation upswing.

Globe Telecom has successfully pursued strategic diversification in other digital ventures like the telehealth platform KonsultaMD, 917Ventures a corporate venture builder for startups in adtech, e-commerce, and logistics. It has been expanding in data centers through its partnerships with ST Telemedia Global Data Centres and Ayala Corporation.

Up to now, Globe Telecom remains to be the leading mobile network operator in the Philippines by subscriber base and market value.

Globe Telecom is recognized for its sustainability practices, holding an “AA” rating from MSCI ESG Ratings and being a constituent of the FTSE4Good Index for nine consecutive years. 

Risks profile and other considerations

Globe Telecom faces strong pressure from its main rival PLDT, which currently leads in the enterprise and fixed broadband sectors. Newer players like DITO have also challenged Globe Telecom’s speeds in some regions.

Some analysts suggest Globe Telecom trades at a valuation premium due to its fintech assets, which can make the stock price sensitive to any changes in GCash’s growth trajectory. 

Successful pivot

Globe Telecom is a compelling investment proposition: it’s a leader in the Philippine telecom industry, with strong brand and network and has successfully pivoted from a traditional telco to a tech-driven business, expanding its portfolio beyond connectivity.

For one, its mobile wallet, GCash, is a major driver of digital financial services and revenue growth.  

In 2024, Globe Telecom achieved record revenues, maintaining strong EBITDA margins through cost-saving initiatives. Its management has been generously offering a competitive dividend yield, paying out a significant portion of earnings to shareholders.

Finally, Globe Telecom is expected to thrive due to significant investments in Artificial Intelligence (AI), the growing need for efficient healthcare solutions, and global sustainability efforts, making it a balanced play for growth and income.  

Happy New Year! – Rappler.com

(The article has been prepared for general circulation for the reading public and must not be construed as an offer, or solicitation of an offer to buy or sell any securities or financial instruments whether referred to herein or otherwise.  Moreover, the public should be aware that the writer or any investing parties mentioned in the column may have a conflict of interest that could affect the objectivity of their reported or mentioned investment activity.  You may reach the writer at [email protected])