PHILIPPINE SHARES rebounded on Wednesday on bargain hunting after their three-day slide and amid an improved outlook for the economy.
The Philippine Stock Exchange index rose by 0.48% or 30.79 points to end at 6,330.46 on Wednesday, while the broader all shares index dropped by 0.24% or 9.06 points to close at 3,678.80.
“Investors hunted for bargains following three straight days of decline. Helping in the market’s rise was BMI’s 6.3% economic growth projection for the Philippines this 2025,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“Also aiding was the record high vehicle sales in the Philippines in 2024 as per the joint report of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA), which somehow reflects strong spending in the country,” Mr. Tantiangco added.
Fitch Solutions’ unit BMI expects Philippine gross domestic product (GDP) to expand by 6.3% this year, faster than its 2024 growth forecast of 5.8%, it said on Tuesday. The government is targeting 6-8% GDP growth this year.
Meanwhile, a CAMPI-TMA report showed that new vehicle sales jumped by 8.7% to a record-high 467,252 last year from 429,807 units in 2023. However, this missed the industry’s 2024 sales target of 468,300 by 0.2%.
“Philippine shares rebounded above the 6,300 level following the slight recovery in the global market,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“Investors are now eyeing Wednesday’s US CPI (consumer price index) report… to assess whether inflation is nearing the Federal Reserve’s 2% target, which could prompt a shift in interest rate policy,” he added.
The Dow Jones Industrial Average rose 197.27 points or 0.47% to 42,495.92; the S&P 500 gained 17.16 points or 0.30% to 5,853.64; and the Nasdaq Composite gained 37.38 points or 0.20% to 19,125.48, Reuters reported.
US stocks received an initial lift after a Labor Department report showed the producer price index rose less than expected in December, but the report failed to sway expectations about the Federal Reserve’s likely path of monetary policy this year.
Sectoral indices were mixed. Property increased by 2.03% or 46.96 points to 2,357.70; services rose by 0.94% or 19.48 points to 2,090.86; and industrials inched up by 0.005% or 0.42 point to 8,948.84.
Meanwhile, holding firms dropped by 0.49% or 26.63 points to 5,305.33; mining and oil declined by 0.38% or 30.27 points to 7,786.23; and financials retreated by 0.09% or 2.08 points to 2,150.28.
Value turnover declined to P5.44 billion on Wednesday with 592.49 million shares traded from the P5.75 billion with 705.91 million issues exchanged on Tuesday.
Decliners beat advancers, 100 versus 88, while 44 names were unchanged.
Net foreign selling decreased to P540.58 million on Wednesday from P886.66 million on Tuesday. — R.M.D. Ochave with Reuters
