By Alexandria Grace C. Magno
PHILIPPINE Stock Exchange index (PSE) rebounded on Tuesday, climbing back above the 6,400 level as investors took cues from strong factory data and a continued growth outlook from Fitch Solutions, as trading remained cautious ahead of the release of inflation data.
The benchmark PSEi rose by 1.66% or 104.88 points to close at 6,401.96. The broad index of all shares rose 1.1% or 38.92 points to 3,548.44.
“The PSEi ended higher amid cautious trading as investors stayed on the sidelines ahead of the inflation print, which is widely expected to remain stable,” said Luis A. Limlingan, head of sales at Regina Capital Development Corp., in a Viber message.
He added that sentiment was supported by renewed optimism after Fitch Solutions unit BMI kept its Philippines growth steady, reflecting confidence in renewed 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, reflecting confidence in the recovery in public and private investment despite recent growth disappointments,” Mr Limlingan said.
He noted that the supporting data points are helping to address concerns about domestic uncertainty and ease market volatility.
The local boss also received support from January’s manufacturing data, which showed factory growth at the fastest pace in nine months and outperforming regional peers.
“The local currency rebounded after January factory activity rose to an ASEAN (Association of Southeast Asian Nations) nine-month high, supporting an optimistic outlook for 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 an increase.
However, S&P Global cautioned that this improvement may be short-lived as business confidence continues to weaken amid concerns about external demand and a weak global economic environment.
Meanwhile, BMI maintained its growth forecast for the Philippines at 5.2% this year despite last year’s slow performance. Projections remain on the government’s target of 5% to 6%.
“Currently, we maintain our growth forecast for 2026 at 5.2%, but the low base for 2025 makes this an unfavorable outlook,” BMI said in a report on Monday, adding that it expects a recovery in both public and private investment to support growth.
All industry indicators ended higher. Mining and oil led the gains, jumping 4.61% to 17,128.95. Goods 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 added 1.15% to 5,071.82.
Market breadth was positive, with 134 advancers against 84 decliners, while 60 stocks were unchanged.
The price dropped to P6.93 billion, with 1.15 billion shares traded, up from P9.11 billion and 2.29 billion shares on Monday.
Total imports decreased to P236.41 million from P291.04 million in the previous period.
