Local stocks rebounded Friday as investors engaged in bargain hunting following a steep decline in the previous session, fueled by expectations of further monetary easing.
The Philippine peso also strengthened Friday, closing at 58.86 against the U.S. dollar, up from Thursday’s finish of 58.945.
The Philippine Stock Exchange index jumped 105.61 points, or 1.7 percent, to close at 6,328.97. The broader all shares index also gained, rising 35.20 points, or 0.99 percent, to finish at 3,583.23.
“The local market bounced back as investors hunted for bargains with hopes pinned on another possible rate cut by the Bangko Sentral ng Pilipinas,” said Japhet Tantiangco, research head at Philstocks Financial Inc.
Tantiangco noted that investors are viewing a potential BSP rate cut as a necessary catalyst following dismal fourth-quarter gross domestic product data.
The financial sector led the rally, surging 4.23 percent, followed by the services sector, which advanced 1.42 percent. Only the mining and oil index ended in the red, declining 1.03 percent.
Despite the index gain, market breadth remained negative as decliners outnumbered gainers, 108 to 90, while 65 stocks were unchanged. Value turnover was robust at P13.5 billion.
Foreign investors turned net buyers, with inflows totaling P41 million.
Bank of the Philippine Islands was the day’s top index gainer, jumping 9.73 percent to P124. Ayala Corp. was the main index laggard, dropping 3.8 percent to P506.
Asian stocks took a hit on Friday amid fresh worries over vast investments in artificial intelligence, gold and silver tumbled after hitting multiple record highs, and oil retreated on hopes for an easing of US-Iran tensions.
Markets have endured a rollercoaster ride this week as traders weathered a weaker dollar, Donald Trump’s threats against Tehran, a resumption of tariff warnings and a possible US government shutdown.
Fresh optimism in the tech sector about the future of AI has provided support, however, with healthy earnings from companies including Meta, Samsung and SK hynix providing much cheer.
However, the positivity took a hit on Thursday after Microsoft announced a surge in spending on AI infrastructure and revived concerns that companies could take some time before seeing a return on their investments.
There are also fears that firms’ valuations may be a little too stretched and markets could be in a bubble, having soared in recent years to record highs on the back of a tech-fueled rally.
“Microsoft suffered its worst session since the COVID‑era crash, falling 12 percent and accounting for over two‑thirds of the S&P 500’s decline,” wrote National Australia Bank’s Rodrigo Catril.
“Concerns centered on rising investment spending, slower Azure (cloud service) growth, and a longer runway to monetizing AI.”
Trump Fed pick
Wall Street ended mostly in the red, with Dow the only advancer.
Asia also struggled amid speculation Trump will pick Kevin Warsh, a former Fed governor and a man considered more hawkish on interest rates, as the next boss of the central bank. The president has said he will name a successor to Jerome Powell on Friday morning US time.
Hong Kong, Shanghai, Tokyo, Sydney, Singapore, Taipei and Bangkok were all down. Seoul, Manila and Wellington rose.
Paris was flat as data showed France’s economy grew slower last year than 2024. London opened lower but Frankfurt rose.
Jakarta rose after a two-day rout sparked by index compiler MSCI calling on regulators to look into ownership concerns.
The compiler said: “If insufficient progress is made towards achieving necessary transparency enhancements by May 2026, MSCI will reassess Indonesia’s market accessibility status.”
It warned this could result in “a weighting reduction in MSCI Emerging Markets Indexes for all Indonesian securities and a potential reclassification of Indonesia from Emerging Market to Frontier Market status”.
Gold was also in retreat, sitting around $5,150 an ounce, a day after topping out above $5,595. Silver was at $106 from a peak of more than $121.
The precious metals were also weighed by a slight uptick in the dollar, having tumbled on Trump appearing to be happy to see the world’s reserve currency weaken despite the potential risk of pushing up US inflation.
Investors are keeping tabs on developments in the Middle East after the US president sent an “armada” to the region and warned Iran of possible strikes if it did not reach a fresh nuclear deal.
Both main contracts were down more than one percent, having spiked as much as five percent Thursday.
Still, concerns remain about a conflict in the crude-rich region, which would send prices soaring, also putting upward pressure on inflation.
In Washington, the US Senate edged closer to a vote on a funding deal to avert a government shutdown following a bitter standoff over Trump’s sweeping immigration crackdown.
Current government funding lapses at midnight on Friday. With AFP
