IMPROVED investor sentiment drove the stock market to a near seven-month high on Wednesday and the peso also closed at its strongest level in almost four months.
The benchmark Philippine Stock Market index (PSEi) rose for a second straight day, gaining 24.22 points or 0.37 percent to 6,498.82 — the highest since July 14, 2025’s 6,525.04.
The broader All Shares also rose by 0.37 percent, adding 13.43 points to 3.6065.53.
The peso, meanwhile, strengthened by 24 centavos to P58.29 versus the dollar, its strongest close since Oct. 21, 2025’s P58.225:$1.
The currency opened at P58.44 to the greenback and ranged from P58.255 to P58.48. Volume rose to $1.464 billion from $1.178 billion.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso strengthened as the stock market climbed on news of stronger foreign direct investments.
Japhet Tantiangco, research manager at Philstocks Financial Inc., said the PSEI was supported by the appreciation of the peso and continued bank lending growth.
Net foreign direct investments rose to a four-month high of $897 million in November, the central bank reported on Tuesday.
Last Friday, meanwhile, it said that bank lending had expanded by 9.2 percent in December, although the pace slowed from November’s 10.3 percent.
Trading activity was robust at the stock market, with net value turnover reaching P7.58 billion, above the year-to-date average of P6.44 billion.
Foreign investors were net buyers, posting net inflows of P834.62 million.
All but two of the sectoral indices closed in the green, with mining and oil up the most by 1.55 percent. Holding firms and services, on the other hand, respectively slipped by 0.20 percent and 0.13 percent.
Jollibee Foods Corp. was the top index gainer, climbing 4.10 percent to P208.20, while Puregold Price Club Inc. fell the most: 2.05 percent to P38.20.
Ron Acoba, chief investment strategist at Trading Edge Consultancy, said the benchmark index was showing notable resilience.
“The subsequent rebound to just below 6,400 indicates that investors are still finding value in local equities despite macroeconomic headwinds,” he said.
Acoba said the PSEi’s ability to hold its ground relative to broader weakness in United States markets pointed to strong underlying sentiment and defensive positioning among domestic investors.
“Considering its performance amid a domestic slowdown and global market corrections, the index appears well-positioned to test its next technical resistance near 6,500, with momentum likely supported by selective sector strength and foreign inflows,” he said.
Meanwhile, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the rally was partly being driven by global fund shifts toward emerging markets, particularly in Asia, that were offering relatively lower price-to-earnings valuations.
This rotation, he added, has benefited the Philippine stock market, which has underperformed in recent years and is now in catch-up mode.
WITH A REPORT FROM NIÑA MYKA PAULINE ARCEO
