PSEi jumps 1.67% on economic growth hopes
Local stocks rebounded sharply on Tuesday, with the Philippine Stock Exchange Index (PSEi) climbing 1.67 percent or 104.88 points to close at 6,401.96. This, as investors returned to the market on expectations of stronger economic activity and a possible policy rate cut from the Bangko Sentral ng Pilipinas (BSP).
Market sentiment improved amid hopes that the Philippine economy would regain growth momentum. This was thanks to the government’s plan to spend P1.44 trillion in the first quarter to help re-accelerate economic activity.
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the PSEi ended higher amid cautious trading. Investors remained on the sidelines ahead of the inflation print, which is broadly expected to stay stable.
“Market sentiment was supported by renewed optimism after Fitch Solutions’ BMI maintained its 2026 growth forecast for the Philippines, signaling confidence in a recovery in public and private investment despite recent growth disappointments,” Limlingan said.
“This may have helped offset lingering concerns over domestic uncertainties and tempered risk aversion in the market,” he added.
Philstocks financial research manager Japhet Tantiangco said investors also positioned ahead of the BSP’s February policy meeting. They anticipate another cut in the central bank’s key interest rate.
Trading activity remained active, with net value turnover reaching P6.58 billion.
Foreign investors were net buyers for the day, posting net inflows of P236.41 million. This signaled improved offshore interest in local equities.
All sectoral indices ended in positive territory, led by the mining and oil index. It surged 4.62 percent, marking the biggest gain among sectors.
