The Philippine Stock Exchange index (PSEi) bounced back strongly on Friday, climbing 1.71 percent to close at 6,413.10, as investors took advantage of lower valuations following a mostly downbeat week in the local market.

Analysts attributed the day’s rebound to bargain-hunting and improved investor confidence, buoyed by foreign buying and a stronger peso. Foreign investors recorded net inflows of P126.82 million, while total value turnover hit P5.66 billion, slightly surpassing the year-to-date average of P5.55 billion.

"The local bourse closed higher as investors engaged in bargain hunting following recent declines, focusing on prospects for reform and improved market operations,” Luis Limlingan, Head of Sales at Regina Capital Development Corporation, said.

“Meanwhile, gold prices declined as a firmer U.S. dollar and profit-taking offset earlier gains. Oil prices also edged lower amid reports that OPEC+ may consider increasing output in July, raising expectations of a possible supply surplus.”

Notably, the Philippine peso opened at 55.68 and closed stronger at 55.25 against the U.S. dollar, with a weighted average of 55.493, based on data from the Bankers Association of the Philippines. The peso’s firming likely helped improve investor sentiment, making local assets more attractive and easing concerns over imported inflation and dollar-denominated debt.

Sectoral performance was mixed, with financials leading the charge. The banking sector surged 2.38 percent to end as the session’s top gainer, while the mining and oil sector was the lone laggard, slipping 0.65 percent.

Market breadth was positive, with 109 advancers edging out 82 decliners.

Among index heavyweights, SM Prime Holdings, Inc. led the gainers, rising 3.52 percent to P23.50. On the other hand, Monde Nissin Corporation was the session’s main laggard, falling 3.17 percent to P6.72.

Adding to the market’s optimism, RCBC Chief Economist Michael Ricafort noted that “President Marcos maintained his economic team a day after asking for the courtesy resignation of all cabinet secretaries, thereby providing greater certainty, predictability, and continuity in terms of policies and priorities – especially from the perspective of the local financial markets.”

Across Asia, regional markets were mixed as investors continued to assess the fiscal outlook of the United States amid the projected rise in U.S. debt linked to former President Donald Trump’s latest tax legislation.