Philippine Stock Market Rises 2.11% as Bargain Hunting Drives PSEi Rebound

 

The Philippine stock market extended its recovery for a second consecutive session as investors took advantage of lower share prices, pushing the benchmark index to its strongest closing level since late September.

The Philippine Stock Exchange index (PSEi) climbed 119.53 points, or 2.11 percent, to finish the week at 5,782.70. The broader All Shares index also advanced, gaining 44.12 points, or 1.39 percent, to close at 3,218.81.

Buying interest spread across most market sectors, with services leading the advance through a 4.09 percent increase. Holding firms were the only sector to decline, slipping 0.12 percent.

DragonFi Securities Inc. equity research analyst Franco Fernandez attributed the market's gains to bargain hunting, which attracted foreign investors and turned them into net buyers during the session.

Among the strongest performers were RL Commercial REIT, which surged 9.05 percent to P6.75, International Container Terminal Services Inc. (ICTSI), which rose 4.81 percent to P860, PLDT, which gained 4.17 percent to P1,250, and Bank of the Philippine Islands (BPI), which advanced 3.53 percent to P99.80.

Fernandez described the week's performance as a technical rebound, noting that investors continued buying despite a lack of major domestic market catalysts. He also cited the peso trading above P63 against the US dollar and lingering economic concerns as factors weighing on investor sentiment.

Improving conditions across Asian stock markets and the continued decline in global bond yields may have provided additional support for Philippine equities, he added.

Regina Capital's Luis Limlingan pointed to another possible factor behind the renewed buying interest: the potential redirection of foreign investment toward other emerging markets following MSCI's warning about a possible downgrade involving Indonesia.

Such a shift could benefit markets like the Philippines as international investors reassess their regional allocations. However, Limlingan cautioned that geopolitical uncertainties and domestic economic risks continue to temper investor confidence.

Trading activity strengthened alongside the market's gains. Total turnover reached P8.51 billion, up from P6.99 billion in the previous session. Advancing stocks outnumbered declining issues, 106 to 78, while 69 stocks ended unchanged.

The latest advance indicates renewed investor appetite for Philippine equities, although the sustainability of the recovery will depend on broader economic conditions, foreign fund flows and developments in regional markets.