PSEi rebounds 1.53% on bargain hunting, rate-cut hopes

The Philippine Stock Exchange index (PSEi) rebounded Thursday, closing at 6,487.53, up 1.53 percent, as investors returned to the market following recent declines.

Market participants cited renewed bargain hunting, supported by expectations that the Bangko Sentral ng Pilipinas (BSP) may deliver another rate cut at its upcoming policy meeting. Optimism that the domestic economy could regain a faster growth trajectory also underpinned buying interest.

Foreign investors were net buyers

Foreign investors were net buyers, posting net inflows of P1.31 billion, which helped drive the rally. Trading activity improved, with net value turnover reaching P6.98 billion, above the year-to-date average of P6.15 billion.

Sectoral performance was broadly positive, with services leading gains, up 2.02 percent. Mining stocks were the sole laggards, slipping 1.02 percent. Market breadth was positive, with 115 advancers, 96 decliners and 58 unchanged issues.

Luis Limlingan, head of sales at Regina Capital Development Corporation, said, “The PSEi ended higher after closing lower in the past two trading days.” 

WB forecast

He said buying pressure returned as investors engaged in bargain hunting following the recent pullback, citing the World Bank’s forecast that Philippine economic growth is expected to remain above 5 percent through 2027.

Meanwhile, the peso closed at 59.46 per dollar on 15 January, slightly firmer than Wednesday’s historic low of 59.44, providing modest support to market sentiment.