Philippine equities found support last week as bargain hunters returned following a GDP-driven selloff, though broader investor conviction remains cautious.

The PSEi closed at 6,328.97, flat week-on-week but still up 4.6 percent for January. The rebound was aided by a firmer peso and reassurances from the BSP on managing foreign exchange volatility. Foreign investors remained net buyers, reflecting selective positioning rather than broad risk-on sentiment.

Index rebalancing also influenced flows, with RL Commercial REIT set to replace Alliance Global Group in the PSEi. Such technical adjustments provided short-term support but did little to change the underlying narrative of cautious optimism.

BDO expects equity performance to remain uneven, with investors favoring defensives and companies with visible earnings and balance sheet resilience rather than chasing cyclical growth stories.