Philippine shares rebound on World Bank forecast

Philippine stocks climbed back above the 6,400 level on Thursday, boosted by the World Bank’s growth forecast for 2026 and speculation that the Bangko Sentral ng Pilipinas (BSP) could trim interest rates.

The benchmark Philippine Stock Exchange index (PSEi) rose 1.52% or 97.72 points to 6,487.53, its strongest finish in six months. The broader all-share index gained 0.68% or 24.76 points to 3,660.7.

Foreign investors were net buyers, pumping PHP 1.31 billion into the market, up from PHP 291.46 million a day earlier.

“The local bourse surged on the back of a massive foreign buying spree after the World Bank forecast of a 5.3% GDP (gross domestic product) growth for fiscal year 2026 renewed investors’ confidence in buying the Philippine consumer growth story,” AP Securities, Inc. said in a market note.”

The World Bank expects the economy to expand 5.3% in 2026 — within the government’s 5-6% target — and 5.4% in 2027, below the 5.5-6.5% goal, citing governance challenges.

Investors also speculated that the BSP might cut rates at its Feb. 19 policy meeting, although Governor Eli M. Remolona, Jr. has said the benchmark is already “very close” to its desired level.

“Buying was supported by hopes that the BSP will go for another rate cut in their upcoming policy meeting, and that the local economy would eventually be able get back to its fast growth pace,” Philstocks Financial Research Manager Japhet Louis O. Tantiangco said in a Viber message.

Sector gains were broad-based. Services led the rally with a 2.01% gain, followed by property at 1.53%, financials at 1.44%, holding firms at 1.13% and industrials at 0.18%.

On the other hand, mining and oil fell 1.01%.

DigiPlus Interactive Corp. led index members, climbing 4.59% to PHP 16.40, while JG Summit Holdings, Inc. fell 1.34% to PHP 25.85 amid profit-taking.

Trading was active, with value turnover rising to PHP 7.3 billion from PHP 6.92 billion and 2.02 billion shares changing hands, compared with 1.86 billion on Wednesday.

Advancers outnumbered decliners 115 to 96, with 58 stocks unchanged.

Market analysts said foreign inflows and optimism over consumer spending were key drivers of the rebound.

“Broad-based buying prevailed in today’s session, which was mainly led by services and property, while mining and oil headed the opposite direction,” AP Securities said. — Alexandria Grace C. Magno