PSEi surges past 6,100 as Philippines' upper-middle-income status boosts optimism

The Philippine stock market closed the week on a strong note on Friday, with the main barometer hovering above the 6,100 level, as investor optimism was boosted by the country’s upgrade to upper-middle-income status.

The bellwether Philippine Stock Exchange index (PSEi) gained 62.31 points or 1.02%, finishing the trading day at 6,188.03.

The broader All Shares index likewise saw a 27.91-point or 0.83% increase to 3,370.94 at the closing bell.

Rizal Commercial Banking Corp. chief economist Michael Ricafort noted that Friday’s close is the third straight day of the local bourse’s winning streak for the week “on continuing effects of the recent World Bank move to raise the Philippines to upper middle income country status.”

The economist said the country’s elevation to UMIC or upper-middle-income country “could somewhat help increase investments and credit into the country at better terms.”

The Philippines recorded a gross national income (GNI) per capita of $4,850, exceeding the World Bank’s upper-middle-income threshold of $4,636 for the fiscal year.

Regina Capital head of sales Luis Limlingan likewise said that “macroeconomic developments from the previous day also continued to influence investor reaction and positioning.”

Limlingan added that buying pressure sustained as sentiment remained upbeat amid stabilizing oil prices and a steadier local currency, with investors continuing to add positions as market conditions appeared less volatile.

More than 1.066 billion shares, valued at P4.43, changed hands. Advancers led decliners, 108 to 64, while 67 issues were unchanged. –NB, GMA News