PSEi rebounds on bargain hunting but stays below 6,000

MANILA, Philippines — Philippine stocks bounced back on Thursday as investors hunted for bargains following two straight sessions of losses, although the benchmark index remained below the 6,000 level. READ: PSEi drops below 6,000 on slower growth, geopolitical woes The Philippine Stock Exchange Index (PSEi) climbed 0.70 percent, or 41.70 points, to close at 5,958.64. The rebound suggests that market participants were drawn to undervalued stocks. However, the failure to reclaim the 6,000-point psychological barrier indicates that cautious sentiment still prevails in the market. In the previous session, concerns over slower economic growth and geopolitical woes weighed on the market. The Philippine economy faces challenges such as inflationary pressures and global economic uncertainties. These factors could affect investor risk appetite and increase market volatility. While remittances from overseas Filipino workers are a crucial pillar supporting the Philippine economy, a global economic slowdown could also impact the employment and remittance capabilities of these workers, indirectly affecting domestic consumption and, consequently, the stock market. Geopolitical tensions in the South China Sea continue to be a concern for investors. Regional instability could negatively impact trade and investment, hindering economic growth. In terms of relations with Japan, the Philippines is a significant trading and investment partner, and Japan's economic conditions and its policies towards the Philippines could influence the Philippine market. Recent trends in the Japanese economy and foreign direct investment into the Philippines will be closely watched for future market direction.