Stocks snap slump as ADB growth outlook lifts sentiment
Published Jan 27, 2026 04:48 pm
Equities snapped a multi-day losing streak Tuesday, Jan. 27, as investors swooped in to pick up beaten-down shares following an upgraded growth outlook from the Asian Development Bank (ADB) and resilient export data.
The Philippine Stock Exchange index (PSEi) gained 33.03 points, or 0.53 percent, to close at 6,306.90. While the headline index pushed higher, the broader market remained fragmented, with sectoral gauges split evenly between gains and losses.
Trading activity re a spike, surging to 2.23 billion shares valued at ₱15.85 billion. Despite the index’s advance, market breadth remained negative as decliners outnumbered gainers 112 to 85, while 61 issues remained unchanged.
Luis Limlingan, managing director at Regina Capital Development Corp., noted that the shift in sentiment was largely driven by institutional and retail bargain hunting.
Investors were particularly buoyed by fresh assessment from the ADB, which suggested the gross domestic product (GDP) could reach a growth rate of six percent by 2027.
The optimistic trajectory, however, remains contingent on sustained acceleration of both private and public-sector investments. Limlingan observed that this long-term improved outlook helped repair risk appetite, leading to selective buying across heavyweight blue chips.
Local sentiment also benefited from external tailwinds as Japhet Tantiangco, research manager at Philstocks Financial, said that positive spillovers from Wall Street provided a necessary cushion for the local bourse to recover from two consecutive days of declines.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., also pointed to the latest trade figures as catalyst for the rally.
Exports continued their year-on-year expansion, outpacing import growth and resulting in the narrowest trade deficit since February 2025.
Ricafort noted that this narrowing of the trade gap is critical development for the country’s external accounts, as it could lead to a more manageable current account balance and a healthier balance of payments position.
Such fundamental improvements are expected to provide much-needed stability for the peso exchange rate against the greenback in the near term.