Corporate results for the third quarter show resilience, with index-weighted earnings up 9.3 percent compared with 6.9 percent in the first half. Yet the stock market barely noticed. Investors remain cautious amid governance concerns and macro headwinds.
BDO Securities said conglomerates and industrials led the improvement, posting double-digit profit growth. Power firms also performed strongly, while consumer and telecom sectors lagged. REITs continued to deliver consistent gains, buoyed by new asset infusions.
Still, 16 of 49 covered companies missed earnings estimates, mainly due to weaker sales and rising costs. Only seven firms, including San Miguel, Cebu Pacific, and Nickel Asia, beat forecasts.
Analysts said that while earnings recovery is evident, investors are not rewarding performance because of broader credibility issues. “There is fatigue in the market,” one analyst explained. “Good results are being ignored because people no longer believe the playing field is predictable.”
The decoupling between fundamentals and sentiment underscores a deeper challenge: how to rebuild market trust after years of volatility and policy reversals.