Reversing the Trend: A Positive Shift for the PSEi
The Philippine Stock Exchange Index (PSEi) successfully brought an end to its six-session losing streak on Friday, a notable reversal driven by a wave of bargain hunting from traders. Taking advantage of the market’s recent downturn, investors stepped in to acquire stocks at what they perceived as more favorable prices, propelling the benchmark index to a significant increase of 0.85 percent, which translates to a gain of 53.40 points, and a closing value of 6,306.13. This positive movement was mirrored by the broader All Shares Index, which also climbed by 0.39 percent to settle at 3,751.67. The day’s trading activity was robust, with a total of 1.3 billion shares changing hands, amounting to a value of P5.6 billion. This clear market turnaround provides a glimmer of stability for investors amidst a climate of global tariff anxiety that has been weighing on market sentiment.
The Driving Force Behind the Rebound
The primary catalyst for the market’s rebound, as noted by Japhet Tantiangco, the research head at Philstocks Financial Inc., was the aggressive activity of bargain hunters. Prior to Friday’s rally, the PSEi had fallen below the key 6,300 level, creating an opportune moment for traders to enter the market and purchase stocks at discounted prices. However, a deeper look into the day’s trading activity reveals a more complex picture. Despite the overall positive momentum, foreign investors remained net sellers, with total outflows amounting to P54.3 million. This continued foreign selling suggests that while domestic investors are showing increased confidence, a significant portion of international capital remains cautious about the market’s outlook. This contrast highlights the tentative nature of the recovery and indicates that the market’s trajectory is still subject to the broader global economic climate and sentiment.
Sectoral Gains and a Balanced Market
The positive market movement was particularly pronounced in the conglomerates sector, which led the day’s gains. Key players in this group saw impressive rallies, with SM Investments Corp. climbing by 2.21 percent to P834 and JG Summit Holdings Inc. soaring by a substantial 5.24 percent to P22.10. The day’s most actively traded stock was DigiPlus Interactive Corp., which rallied by an impressive 8.33 percent to P27.30 per share. The gains were also broad-based, with other notable performers including major financial institutions like BDO Unibank Inc. and Bank of the Philippine Islands, as well as property giant SM Prime Holdings Inc. and port operator International Container Terminal Services Inc. However, not all stocks fared well, as some key players such as Converge ICT Solutions Inc. and Metropolitan Bank and Trust Co. experienced declines. The day concluded with a near-even market breadth, as 99 stocks gained, 91 lost, and 50 remained unchanged, underscoring the balanced and cautious nature of the market’s recovery following a week of volatility.
