The Philippine stock market staged a sharp turnaround on Friday, snapping a multi-session slide as investors zeroed in on oversold stocks and recalibrated expectations for monetary policy after the release of softer economic data.
The benchmark Philippine Stock Exchange Index jumped 105.61 points, or 1.7 percent, to finish at 6,328.97, climbing back above the 6,300 level after sinking to three-week lows in the previous session.
The rebound came despite a broadly cautious global market backdrop, underscoring how local factors briefly took center stage for Philippine equities.
Market participants pointed to renewed speculation that the Bangko Sentral ng Pilipinas could consider another interest rate cut following weaker-than-expected fourth-quarter 2025 gross domestic product figures.
Slower growth reinforced the view that policymakers may have more room to support the economy, a prospect that tends to favor equities, particularly rate-sensitive stocks.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the market’s advance allowed the PSEi to recover most of the ground lost a day earlier, when the index slid by more than 130 points.
He noted that while Friday’s rally pushed the benchmark to one of its highest levels in roughly five and a half months, the market remains below its recent intraday high of 6,494.1 recorded earlier in January.
Ricafort added that the GDP miss initially weighed on sentiment, but investors eventually looked past the headline number and focused on the potential policy response, helping fuel selective buying in heavily sold names.
Philstocks Financial research manager Japhet Tantiangco echoed this view, saying bargain hunting played a crucial role in offsetting lingering concerns about the broader economic outlook.
According to him, investors appeared willing to re-enter positions after the recent pullback, especially in stocks perceived to be trading below fair value.
Foreign investors also lent support to the market’s recovery, posting net inflows of P41.01 million during the session. Trading activity was brisk, with total value turnover reaching P13.51 billion, reflecting renewed participation after days of cautious positioning.
Sectoral performance was largely positive, led by financial stocks, which surged 4.23 percent as banks benefited from expectations of lower borrowing costs and improved liquidity conditions. Most other sectors closed higher, while mining and oil was the lone decliner, slipping 1.03 percent.
Market breadth, however, suggested that the rebound was selective rather than broad-based, as decliners narrowly outnumbered advancers, 108 to 90.
Among index heavyweights, Bank of the Philippine Islands stood out as the session’s top performer, soaring 9.73 percent to close at P124.00. On the other end, Ayala Corp. lagged the market, falling 3.8 percent to P506.00.
The PSEi’s strong showing stood in contrast to the cautious tone seen overseas. US equities finished mixed, with the S&P 500 edging slightly lower and the Nasdaq pressured by continued selling in large technology stocks. In Asia, major markets such as Japan’s Nikkei and Hong Kong’s Hang Seng retreated amid profit-taking and sector-specific concerns, mirroring Wall Street’s defensive mood.
Against this risk-off global backdrop, the Philippine market’s rebound highlighted how domestic dynamics, particularly valuation-driven buying and policy expectations, were able to temporarily overpower external headwinds. Analysts cautioned, however, that sustained gains will likely depend on clearer signals from both global markets and local policymakers in the weeks ahead.