- The Philippine Stock Exchange index (PSEi) rebounded 1.61% to 5,700.99 on Friday as bargain hunters returned after the market fell to a six-year low.
- All six sector gauges advanced, while 120 stocks gained against 57 decliners, with trading turnover reaching ₱7.82 billion, data from the stock exchange showed.
- The recovery suggests investors took advantage of lower share prices after the previous session’s sell-off. However, a single-day rebound does not necessarily signal a sustained market recovery, particularly as economic and geopolitical uncertainties continue to weigh on investor sentiment.
The Philippine Stock Exchange index (PSEi) rebounded 1.61% to 5,700.99 on Friday as bargain hunters returned after the market fell to a six-year low.
All six sector gauges advanced, while 120 stocks gained against 57 decliners, with trading turnover reaching ₱7.82 billion, data from the stock exchange showed.
The recovery suggests investors took advantage of lower share prices after the previous session’s sell-off. However, a single-day rebound does not necessarily signal a sustained market recovery, particularly as economic and geopolitical uncertainties continue to weigh on investor sentiment.
ICTSI leads trading activity
International Container Terminal Services Inc. led the most actively traded stocks, rising 2.08% to ₱859 as ₱1.34 billion worth of shares changed hands, nearly five times the turnover of second-ranked BDO Unibank.
Aboitiz Equity Ventures and Ayala Corp. also advanced, while SM Investments was the only decliner among the five most actively traded stocks, falling 1.44% to ₱515.
Global tensions add to market uncertainty
Global geopolitical tensions remain a risk for financial markets, particularly as developments in the Middle East can affect oil prices and expectations for inflation.
For the Philippines, higher oil prices can increase import costs, put pressure on the peso, and make it more difficult for inflation to ease. Persistent inflation could also limit the room for interest rate cuts, affecting borrowing costs and business activity.
Recovery faces domestic headwinds
The local stock market also faces domestic challenges, including peso weakness, inflation pressures, interest rate uncertainty, and concerns about governance.
These factors can affect corporate earnings, investor confidence, and the attractiveness of Philippine assets relative to other markets.
While bargain hunting helped lift share prices on Friday, the PSEi’s next moves will depend partly on whether investors regain confidence in the domestic economic outlook and global risks become more manageable.
