By Alexandria Grace C. Magno
Philippine Stock Exchange Index (PSEI) rebounded on Tuesday, climbing above the 6,400 level as investors took cues from strong factory data and a stable growth outlook from Fitch Solutions, even as trade remained cautious ahead of the release of inflation data.
The benchmark PSEi closed 1.66% or 104.88 points higher at 6,401.96. The broader all-share index rose 1.1%, or 38.92 points, to 3,548.44.
Louis A., head of sales for Regina Capital Development Corp. “The PSEI closed higher amid cautious trading as investors remained on the sidelines ahead of the inflation print, which is expected to remain broadly stable,” Limlingan said in a Viber message.
He said sentiment was supported by renewed optimism after Fitch Solutions unit BMI kept its growth outlook for the Philippines unchanged, indicating confidence in improving investment activity despite recent economic weakness.
“Market sentiment was supported by renewed optimism after Fitch Solutions' BMI maintained its 2026 growth forecast for the Philippines, indicating improving public and private investment confidence despite recent growth disappointments,” Mr Limlingan said.
He said the positive data points helped counter concerns over domestic uncertainties and ease market risk aversion.
The local stock market also got support from January manufacturing data, which showed factory activity growing at the fastest pace in nine months and outperforming regional rivals.
“Local stock markets rose after factory activity hit a nine-month high in January and outperformed ASEAN (Association of Southeast Asian Nations) peers, supporting a cautiously optimistic outlook for a potential economic recovery,” AP Securities said in a market note.
The S&P Global Philippines Manufacturing Purchasing Managers' Index (PMI) rose to 52.9 in January from 50.2 in December, the strongest improvement since April. A reading above 50 indicates expansion.
However, S&P Global warned that the recovery could be short-lived as business confidence remains weak amid concerns over external demand and the fragile global economic environment.
Meanwhile, BMI maintained its growth forecast for the Philippines at 5.2% this year despite last year's poor performance. This estimate is within the government's target of 5% to 6%.
“For now, we are maintaining our 2026 growth forecast at 5.2%, but the lower 2025 base makes this a more pessimistic outlook,” BMI said in a report on Monday.
All regional indices closed with gains. Mining and oil led the gains, jumping 4.61% to 17,128.95. Assets rose 2.97% to 2,237.06, while services rose 1.72% to 2,666.75. Industrials rose 1.22% to 9,048.38, financials rose 1.2% to 2,120.02 and holding firms rose 1.15% to 5,071.82.
Market breadth was positive, with 134 gainers compared to 84 decliners, while 60 shares remained unchanged.
Value turnover fell to P6.93 billion with 1.15 billion shares traded, down from P9.11 billion and 2.29 billion shares traded on Monday.
Net foreign purchases declined to P236.41 million from P291.04 million in the previous session.