The Philippine Stock Exchange index (PSEi) ended slightly lower for the second consecutive session on Wednesday, easing by 18.95 points or 0.30 percent to close at 6,389.81, as investors booked profits following a three-day rally.
Despite the pullback, the index remains near its highest level in over five and a half months, with all losses since the political noise in July 2025 have been fully erased, with the index holding firmly above the 6,000 level for more than a month. This signaled a confirmed near-term bottom of equities.
RCBC Chief Economist Michael Ricafort said the recent correction remains “a healthy profit-taking move” after the market’s strong rebound from its November 2025 low of 5,584.35, the weakest level in more than five years.
He said that the PSEi’s resilience reflects improving investor confidence, supported by sustained net foreign buying, easing inflation pressures, and expectations of monetary policy support by the Bangko Sentral ng Pilipinas (BSP).
“The PSEi’s ability to stay above 6,000 is a positive technical signal, especially amid continued foreign inflows and expectations of possible BSP rate cuts in 2026,” Ricafort said, adding that the market is also drawing support from renewed focus on governance reforms and improving sentiment toward the Philippine economy.
This, as market sentiment was tempered by slightly weaker global cues, as US equities also retreated modestly from record highs on profit-taking.
Global markets remained also cautious amid heightened geopolitical risks, gold prices to rising to new records, and firmer oil prices.
Technically, the PSEi continues to find support at the 6,110–6,235 range, with stronger support seen at 5,910–6,010. Resistance is eyed at 6,500, followed by a potential retest of the 6,591.94 level posted in May 2025.