Philippine shares closed mixed on Monday, with some investors positioning for an expected central bank rate cut next month while others heeded caution about gaming stocks.
Regulatory pressures on the gaming industry at some point took center stage amid warnings from industry players about the risk of overregulation.
The benchmark PSEi rose by 29.67 points or 0.46 percent to close at 6,425.24, supported by selective buying in index stocks. The broader All Shares also gained, rising 15.22 points or 0.40 percent to 3,779.93.
Despite the modest gains, market breadth was slightly negative with 100 decliners edging out 96 advancers, while 66 issues were unchanged. Trading activity remained moderate, with P7.78 billion in turnover from 910.7 million shares across 88,708 trades.
“The local market closed higher, backed by dovish expectations on the BSP’s policy outlook following June’s weak inflation print,” Japhet Tantiangco, research manager at Philstocks Financial Inc., said.
Investor sentiment was also influenced by international developments, particularly the US decision to delay reciprocal tariff implementation to August 1 for countries yet to finalize trade deals.
First Metro Investments Corp. head of research Cristina Ulang said markets continue to wait for a stronger catalyst amid geopolitical uncertainty.
US President Donald Trump’s recent threat to impose a new 10 percent tariff on countries he claimed were aligning with the “anti-American policies” of the BRICS bloc added to market caution.
The BRICS summit in Brazil has renewed debate over global economic alignments, with traditional alliances like the G7 and G20 losing coherence amid Trump’s “America First” posture.
Gaming sector under pressure
The domestic gaming sector remained in the spotlight, with DigiPlus Interactive Corp. launching a P6-billion share buyback program after its shares fell by over 50 percent across six sessions.
The company’s stock rebounded strongly, closing 14.58 percent higher at P33.80 on Monday.
DigiPlus Chairman Eusebio Tanco said the buyback signaled “firm confidence” in the company’s long-term fundamentals and was a strategic move to stabilize shareholder value amid shifting regulatory sentiment.
Legislative proposals seeking tighter controls on online gambling have caused concern among gaming companies.
These proposals include Senate Bill 2704, filed by Senator Sherwin Gatchalian, which seeks to raise the minimum legal gambling age from 18 to 21, increasing the minimum cash-in to P10,000, and setting a P5,000 minimum top-up requirement.
DFNN warns of gray market risk
DFNN Inc., a technology provider to gaming platforms, warned in a regulatory filing that overly aggressive regulation could unintentionally push players toward offshore and unlicensed platforms, undermining the government’s own policy objectives.
“Well-intended restrictions, if not carefully calibrated, may unintentionally create incentives for lower-income or casual players to shift to unregulated alternatives,” DFNN said.
The firm urged legislators to distinguish between digital-native platforms and long-standing land-based operations, noting that its physical outlets comply with stringent face-to-face KYC, ID-grade facial recognition, and enforce the minimum gambling age of 21.
As investors look ahead to the BSP’s next policy move, the broader equities landscape remains sensitive to both domestic legislative developments and global trade tensions—pressures now converging most visibly in the country’s fast-evolving gaming sector.
