PSEi Edges Higher on Bargain Hunting and Strong Corporate Earnings

MANILA, Philippines — The Philippine Stock Exchange Index (PSEi) posted modest gains on Friday as investors engaged in bargain hunting and responded positively to strong corporate earnings, although overall trading activity remained subdued amid cautious sentiment. The benchmark index rose 0.20 percent, or 12.40 points, closing at 6,290.35.

Philstocks Financial Inc. attributed the market advance primarily to bargain hunting, with investors also drawing encouragement from the second-quarter and first-half earnings reports of select listed companies. Notably, strong results from Universal Robina Corp., Century Pacific Food Inc., and Aboitiz Equity Ventures Inc. helped bolster market sentiment during the session.

Luis Limlingan, head of sales at Regina Capital Development Corp., noted that the local index ended higher despite a weaker-than-expected second-quarter gross domestic product (GDP) print. He explained that bargain hunting and selective buying across key index names supported the gains. Limlingan added that market participants appeared to look beyond the growth miss, focusing instead on expectations regarding the central bank’s next policy moves.

Despite the positive close, other market indicators reflected ongoing investor caution. Net value turnover was recorded at P6.09 billion, indicating relatively subdued trading activity. Market breadth remained negative, with decliners outnumbering advancers 90 to 86. Foreign investors also maintained a selling stance, registering net outflows of P327.51 million.

Sectoral performance was mixed. Property stocks led the gainers, rising 0.99 percent, driven largely by Ayala Land Inc., which emerged as the session’s top performer among index members with a 6.14 percent surge to P16.26 per share. Conversely, the banking sector was the weakest, declining 0.54 percent. Maynilad Water Services Inc., a recent market entrant, was the main laggard in the index, falling 1.49 percent to P18.48.

The market’s resilience amid the GDP disappointment suggests that investors are weighing corporate earnings and central bank policy expectations more heavily than short-term economic growth data. The cautious trading volume and negative market breadth, however, indicate that uncertainty remains, possibly influenced by external factors or concerns about the broader economic outlook.

Looking ahead, investors will likely continue to monitor upcoming macroeconomic data releases and corporate earnings reports for further cues. The central bank’s policy decisions will also remain a key focus, as market participants assess the potential impact on liquidity and borrowing costs in the Philippine economy.