The PSEi finished Wednesday at 6,394.77, up 0.41 percent, as bargain hunting lifted the market after three straight days of declines.

Optimism was supported by firmer Wall Street cues, the continued strengthening of the peso, and growing expectations that the Bangko Sentral ng Pilipinas (BSP) could deliver another rate cut at its upcoming policy meeting.

Overnight, US equities closed higher, providing a constructive lead for Asian markets. The S&P 500 gained roughly 0.6 percent, the Dow Jones Industrial Average rose about 0.4 percent, and the Nasdaq Composite advanced close to 0.8 percent, driven primarily by strength in large-cap technology and communication services stocks.

The move higher was supported by easing US Treasury yields and renewed risk appetite following recent volatility tied to inflation concerns.

Softer US economic data

The rally followed softer US economic data and stable bond market conditions, which helped temper fears of renewed Federal Reserve tightening. Investors interpreted recent data releases as reducing the likelihood of an imminent rate hike, allowing growth stocks — particularly in tech — to recover.

Lower yields tend to boost equity valuations and weaken the US dollar, which in turn supports emerging-market assets.

Renewed optimism that the BSP will reduce its key policy rate — which may or may not be announced tomorrow at the central bank headquarters at 3 p.m. — also supported sentiment.

Multiple economists and analysts project the BSP will reduce the target reverse repurchase rate by up to 50 basis points in response to the economic downturn of 2025, with most predicting the first cut will occur at tomorrow’s meeting.

Trading remained subdued

However, with the central bank in its quiet period, investors remained on the sidelines, awaiting the BSP’s final decision.

As a result, trading remained subdued, with net value turnover at P5.13 billion, below the year-to-date average of P6.32 billion.

Foreign investors were net buyers, registering P467.67 million in net inflows.

Sector performance was largely positive, with Services leading the gains (+1.65 percent), while Industrials was the lone decliner (-0.72 percent). Market breadth was slightly positive, as advancers edged decliners, 101 to 93.

PLUS emerged as top gainer

Among index names, DigiPlus Interactive Corp. (PLUS) emerged as the top gainer, climbing 4.80 percent to P14.42. As a gaming and digital entertainment company (operator of BingoPlus and ArenaPlus), PLUS is classified under Services, and sectoral inflows naturally supported the stock.

When investors rotate into higher-beta consumer and digital plays during risk-on sessions, PLUS typically attracts speculative and short-term capital.

The stock also appears to be extending a technical rebound following recent consolidation. After prior volatility, bargain hunters stepped in as sentiment improved alongside peso strength and firmer global cues. DigiPlus has also been trading with elevated liquidity in recent weeks, making it a preferred vehicle for active traders.

Meanwhile, Semirara Mining and Power Corp. (SCC) remained under pressure, plunging 13.60 percent to P22.55 and ending as the session’s worst performer. The continued backslide of SCC follows the announcement by the Department of Energy last Sunday that the agency decided to auction SCC’s exclusive coal operations contract on its namesake island instead of extending it.