MANILA – The Philippine financial markets experienced slight gains on Tuesday, with investors cautiously optimistic in anticipation of upcoming US inflation data.
According to Philippines News Agency, Inc., the Philippine Stock Exchange index (PSEi) saw a modest increase of 7.35 points, or 0.11 percent, ending the day at 6,879.59. The broader All Shares index also rose by 0.16 percent to 3,580.31. While the market saw mixed results across various sectors, Services led the gains with a 2.04 percent increase. Other sectors such as Holding Firms, Property, and Mining and Oil concluded the session on a positive note, whereas Financials and Industrials experienced declines of 1.08 and 0.08 percent, respectively.
Research and engagement officer Mikhail Plopenio highlighted that the day's modest uptick was attributed to investors engaging in bargain hunting, buoyed by encouraging foreign direct investment (FDI) figures for December 2023, which showed a significant 29.9 percent increase in net inflows year-on-year. However, the overall market sentiment remained cautious, reflecting investor wariness ahead of critical inflation data release in the United States.
The trading session concluded with 109 gainers surpassing 72 losers, and 54 stocks remained unchanged. The Philippine peso also witnessed slight appreciation against the US dollar, closing at 55.31 compared to 55.37 on the previous day. The peso exhibited strength throughout the day, peaking at 55.30 and dipping to a low of 55.51 against the dollar. The currency's movements resulted in an average exchange rate of 55.40 for the day.
Furthermore, the trading volume in the foreign exchange market increased, reaching USD 1.13 billion, up from USD 1.09 billion in the prior session, indicating heightened activity as market participants position themselves ahead of key economic indicators.