Stocks bounce back as investor confidence returns

Stocks bounce back as investor confidence returns | Daily Tribune

The recent rebound in the Philippine stock market signals a return of investor confidence, with market fundamentals once again taking the lead, according to the Federation of Philippine Industries.

FPI chairman emeritus Jesus L. Arranza said the market’s recovery after months of weakness reflects steady leadership from President Ferdinand Marcos Jr., despite political issues linked to alleged corruption in flood-control projects.

“The strong rebound being shown by the Philippine stock market is proof that confidence is returning and fundamentals are reasserting themselves,” the group said.

President Marcos Jr.’s approach to governance

Arranza credited the President’s approach to governance for helping calm investor sentiment. “President Marcos is doing the right thing by staying focused on the work…. His calm, steady demeanor signals that he’s in control and well on top of the situation, and markets respond to that kind of leadership. Calmness begets calmness,” he said.

Erased market losses, highest level since 19 January

The benchmark Philippine Stock Exchange index (PSEi) surged by 104.88 points on Tuesday, 3 February, closing at 6,401.96.

This marked its highest level since 19 January and effectively erased market losses recorded after President Marcos exposed corruption in flood-control projects during his State of the Nation Address in July last year.

The Philippine Stock Exchange index (PSEi) rose by 9.09 points, or 0.1 percent, to end at 6,382.04 on Thursday, 5 February. This marked its strongest closing level since January 19, although it remained below the year’s intraday high of 6,494.10.

Arranza said investors look beyond daily headlines when assessing risks. “Investors read more than headlines — they read a leader’s posture and direction, his body language,” he said. “With no sign of panic or drift, there’s no reason to assume the political noise will rattle the economy or dampen investor appetite.”

FPI said the business sector should remain focused on long-term growth and investment. “Keep building, keep investing, keep doing our part in growing the economy,” the group said.

Stay focused

While condemning those behind the alleged anomalies, FPI stressed the need to stay focused on economic priorities. “We condemn those behind the flood-control anomalies and want swift accountability. But we also have to stay anchored on the country’s economic goals. You rarely go wrong when you respect duly constituted authority and keep the focus where it belongs — on progress,” the statement read.

Earlier, the British Chamber of Commerce of the Philippines also welcomed the market’s strong performance, citing government efforts to boost economic activity, expectations of renewed monetary easing, and continued inflation management.

“These developments set a positive tone for the Philippines’ ASEAN Chairship and further position the country as a strategic trade and investment partner for its regional and global peers such as the UK,” said BCCP chairman Chris Nelson.