MANILA - The Philippine Stock Exchange index (PSEi) and the local currency exhibited significant strength in Wednesday's trading, buoyed by the government's announcement of a decline in the unemployment rate to 3.1 percent in December 2023. The PSEi advanced to 6,830.04, marking a gain of 74.78 points, while the peso appreciated to a 55-level against the US dollar, indicating a positive momentum in the country's financial markets.
According to Philippines News Agency, the stock market reached new heights not seen in nearly a year, specifically since February 13, 2023, on a closing basis. This surge is attributed to the release of the best employment data in almost two decades, dating back to when revised records began in 2005. Additionally, the uplift in the stock market comes a day after the latest decrease in Philippine headline inflation data to 2.8 percent year-on-year.
The broader All Shares index also saw an increase, climbing by 27.71 points to 3,566.76. Except for the Mining and Oil sector, which experienced a decrease of 54.83 points to 9,088.89, all other counters closed with gains. The trading session witnessed a net market value turnover of PHP6.13 billion, with 112 gainers leading 80 losers, and 49 issues remaining unchanged.
On the currency front, the peso showed a notable recovery, closing at 55.95 to a US dollar, improving from the previous day's finish of 56.20. The local currency opened the day strong at 56.08, compared to Tuesday's opening of 56.37 against the dollar. Throughout the day, the exchange rate fluctuated between 55.95 and 56.12, averaging at 56.03 to a dollar.
The trade volume for the day slightly rose to USD1.29 billion, up from USD1.26 billion on Tuesday, reflecting a slight increase in market activity. These developments signal a robust performance in the Philippine financial markets, underscored by positive economic indicators and investor confidence.