2025 Philippine Stock Market Guide for New Investors part 1

Hello, I'm Shoheybeatz.

I am a blogger who write about stock investing in the Philippines since 2020.

After moving to the Philippines, I started studying the Philippine stock market during the COVID-19 pandemic, which caused chaos in global risk asset markets.

What I learned is that trading stocks is not gambling.

It is a business where anyone can increase their assets by understanding how price movements work and trading based on correct information. However, we must be aware that there is a risk of losing money if we neglect to acquire knowledge and trade based on incorrect information.

In this article, I will explain the trends in the Philippine stock market as of the end of March 2025, the factors behind the rise in the PSE index, and the risks of decline, for beginners who want to start investing in the Philippine stock market.

Please note that I am not a broker or financial advisor with specialized knowledge. This article is not intended to recommend or encourage stock investment.


Current State of the Philippine Stock Market in 2025


First of all, I believe the best investment target is the Philippine Composite Index (PSE Composite Index).

This index represents the economy, similar to the Nikkei 225 (NI225) in Japan and the DOW JONES (DJI) and Nasdaq (NDX) in the United States. It is composed of the top 30 domestic companies by market capitalization listed on the Philippine Stock Exchange, such as SM, Ayala, San Miguel, and Jollibee.

The average return rate of the PSEi over the past 10 years has been about 6.6%, and the average annual return over the past 20 years has been 12.65%. This is higher than the Nikkei 225's 4.7% and the Dow Jones' 5.9% over the same period. However, looking at the return percentages over the past four years, there has not been a large profit:

- 2021: 2.22%
- 2022: -7.81%
- 2023: 1.67%
- 2024: 1.2%

Unfortunately, since hitting 9,000 in 2018, the PSEi has been on a downward trend for seven years, and as of March 2025, it is at its lowest level in more than two years.

While other ASEAN stock markets have fully recovered from the financial market crash caused by the pandemic and global inflation, the Philippine stock market is still struggling due to heavy capital outflows after many domestic and foreign investors withdrew from the market.

The Philippine economy has grown by an average of 6% since 2022 and continues to be one of the strongest economies in the world. It ranks second among ASEAN countries, third in Asia, and eighth in the world.

However, market expectations for the Philippines are optimistic for 2025.

Next, I would like to summarize the online news about the market forecasts for the PSE Index in 2025 from major securities companies.

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