Philippine stocks rebound on bargain hunting, BSP remarks

MANILA, Philippines — Local stocks rebounded on Wednesday as bargain hunting offset the previous session’s losses, while expectations of a less aggressive monetary stance from the Bangko Sentral ng Pilipinas (BSP) boosted sentiment. The benchmark Philippine Stock Exchange Index (PSEi) climbed 0.78 percent, or 49.01 points, to close at 6,353.04. Philstocks Financial Inc. said investors also digested remarks from BSP Governor Eli Remolona Jr., who indicated there was only a small chance that the central bank would pursue an aggressive policy tightening path. This provided some relief to investors. Still, market participation remained cautious as investors awaited the United States Federal Reserve’s policy decision and monitored geopolitical tensions following Iran’s surprise attack on the US. Luis Limlingan, head of sales at Regina Capital Development Corp., said bargain hunting in blue-chip stocks ahead of the second-quarter earnings season also lifted the benchmark index. “Optimism over a potential second-half economic recovery further underpinned market sentiment despite lingering external risks,” Limlingan said. Trading stayed below the year’s average, with net value turnover reaching P6.03 billion. Foreign investors provided support, ending the session as net buyers with P657.58 million in net inflows, helping lift the local bourse. Sectoral performance was broadly positive. Conglomerates led the gains, advancing 2.72 percent, while miners were the lone decliner, slipping 0.73 percent. Among individual stocks, Aboitiz Equity Ventures Inc. emerged as the day’s top index performer, jumping 6.73 percent to P36.50. Meanwhile, Converge ICT Solutions Inc. was the session’s biggest laggard, falling 1.87 percent to P10.52. According to analysts, Wednesday’s recovery reflected bargain hunting after Tuesday’s losses and improved sentiment following the BSP chief’s latest policy guidance. However, subdued trading activity suggested investors remained cautious as they weighed global risks and awaited fresh cues from the US central bank. /pai INQ