PSEi, peso end week on high notes

The Philippine Stock Exchange Index (PSEi) rebounded strongly on Friday, jumping 1.70 percent to 6,328.97, as investors returned to bargain hunting after the market’s recent selloff.

Buying interest was supported by expectations that the Bangko Sentral ng Pilipinas (BSP) may consider another policy rate cut in the Monetary Board’s upcoming 19 February meeting following the country’s weak fourth-quarter 2025 GDP performance.

Trading robust

Trading activity was robust, with net value turnover reaching P13.51 billion. Foreign investors were net buyers, posting P41.01 million in net inflows, which helped lift the index.

Sector performance was mixed. Banks led the advance, rising 4.23 percent, while mining stocks were the only decliners, slipping 1.03 percent. Market breadth was slightly negative, with decliners edging advancers, 108 to 90. Bank of the Philippine Islands (BPI) topped index gainers, surging 9.73 percent to P124.00, while Ayala Corporation (AC) was the weakest performer, falling 3.80 percent to P506.00.

Peso strengthened

The day saw the peso likewise strengthen to P58.86 per dollar, improving from P58.94 in the previous session. The appreciation was driven by broad US dollar softness, as markets reassessed the Federal Reserve’s policy stance following its recent decision and focused on weaker-than-expected global growth signals.

Locally, the peso also benefited from foreign inflows into Philippine equities and lighter importer demand, as firms turned cautious after the disappointing GDP data.

While the currency remains near historically weak levels, today’s move reflects short-term stabilization supported by capital inflows and improved risk sentiment, rather than a full reversal of the broader downtrend.