PSEi climbs above 6,100 on World Bank upgrade

MANILA, Philippines – Local stocks rose on Thursday as investors welcomed the World Bank’s decision to upgrade the Philippines to upper middle-income status, while an improvement in factory activity also helped support sentiment.

The benchmark Philippine Stock Exchange Index (PSEi) gained 0.93 percent, or 56.46 points, to close at 6,125.72.

READ: Marcos: PH’s upper-middle-income status validates economic policies

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According to Philstocks Financial Inc.⁠, investors digested the World Bank’s reclassification of the Philippine economy from lower middle-income to upper middle-income, a move seen as a positive signal for the country’s long-term growth prospects.

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The market likewise drew support from the slight improvement in the Philippines’ manufacturing activity, with the S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) inching up to 50.9 in June from 50.8 in May.

“Market sentiment remained upbeat following news of an improved manufacturing PMI for June. The positive macro signal supported risk appetite and sustained demand for equities,” Luis Limlingan, head of sales at Regina Capital Development Corp., said.

Market optimism

Despite the gains, trading activity remained subdued as net value turnover reached only P5.37 billion, indicating cautious participation from investors.

Foreign investors also stayed on the sidelines, ending the session as net sellers with outflows amounting to P199.83 million.

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Sectoral performance was broadly positive, with only the industrial index finishing in negative territory after slipping by 0.11 percent. Mining and oil stocks led the advance, climbing 2.45 percent.

Among index members, Jollibee Foods Corp. emerged as the day’s biggest gainer after jumping 6.29 percent to P148.80.

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Meanwhile, Aboitiz Equity Ventures Inc. was the session’s main laggard, shedding 2.39 percent to P32.70.

READ: Philippines reaches upper-middle income status, World Bank says

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Analysts said investors may continue to monitor whether improving economic indicators can translate into stronger corporate earnings and broader market participation in the coming months. /pai INQ