Philippine stocks surged forward on Monday, fueled by growing optimism surrounding December’s inflation figures and a wave of bargain hunting among investors. The market’s upward trajectory signals a potential shift in sentiment as traders anticipate favorable economic news.
The Philippine Stock Exchange index (PSEi) climbed 0.48%, adding 29.47 points to close at 6,164.53. This positive movement was echoed by the broader all shares index, which rose by a more substantial 1.04%, or 36.69 points, finishing the day at 3,553.74.
Analysts point to expectations of a continued slowdown in inflation as a key driver of Monday’s gains. The Philippine Statistics Authority is set to release the official December inflation data on Tuesday, and forecasts suggest a benign reading of around 1.4%.
This projected figure would represent a significant decrease from November’s 1.5% and a considerable drop from the 2.9% recorded in December of the previous year. If realized, it would mark the tenth consecutive month that inflation has remained below the central bank’s target range of 2%-4%.
Beyond inflation expectations, a recent rebound in manufacturing activity also contributed to the positive market mood. The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) jumped to 50.2 in December, a notable improvement from November’s 47.4.
This marks the strongest manufacturing expansion in four months, driven by a surge in new orders. The market briefly touched the 6,200 level – a peak not seen since September – before solidifying its gains late in the trading session.
Sectoral performance was largely positive, with mining and oil leading the charge, jumping 2.95%. Services, industrials, and financials also posted gains, indicating broad-based investor confidence. However, holding firms and property experienced slight declines.
The day’s trading saw 133 stocks advance, outpacing the 93 that declined, with 51 remaining unchanged. ACEN Corp. emerged as the top performer, soaring 5.5%, while Converge ICT Solutions, Inc. lagged behind, falling 4.65%.
Trading volume increased significantly, reaching P5.74 billion with 948.53 million shares traded, compared to P4.36 billion and 444.17 million shares on Friday. While net foreign buying decreased slightly to P330.78 million, it still indicates continued interest from international investors.
The market’s performance suggests a growing appetite for quality stocks and a cautious optimism regarding the Philippines’ economic outlook. Investors are closely watching the upcoming inflation data release, anticipating further confirmation of the positive trend.
