Philippine shares move sideways as inflation picks up

Philippine shares moved sideways on Thursday as investors were cautious following the release of data showing that inflation picked up to a near one-month high in January.

The Philippine Stock Exchange index (PSEi) inched up by 0.14% or 9.09 points to close at 6,382.04, while the broader all shares index increased by 0.92% or 32.83 points to 3,587.83.

“The PSEi ended almost flat following the release of a slightly higher-than-expected inflation rate. Market sentiment remained cautious as investors digested the inflation data,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message. “Attention turned to the potential impact of these figures on the upcoming BSP (Bangko Sentral ng Pilipinas) policy meeting.”

The main index posted slight gains as the data showed that inflation remained “controlled” despite the pickup, Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said.

“S&P Global Ratings saying the Philippines is still on track for a possible credit rating upgrade also helped in Thursday’s session,” he said.

“The PSEi closed higher on Thursday… as investor sentiment was supported by optimism over the Philippines’ sovereign credit outlook. This followed S&P Global Ratings’ indication of a potential rating upgrade over the next one to two years, citing improving fiscal and external balances,” Unicapital Securities, Inc. Research Head Wendy B. Estacio-Cruz said.

Headline inflation rose to 2% in January from 1.8% in December, but was slower than the 2.9% in the same month last year, the government reported on Thursday.

This was the fastest in 11 months or since the 2.1% in February 2025, which was also the last time the monthly print was within the central bank’s 2%-4% annual target.

It was also higher than the 1.8% median forecast from a BusinessWorld poll of 18 economists, but was within the BSP’s 1.4%-2.2% estimate for the month.

Meanwhile, S&P said in a Feb. 3 report that the Philippines remains on track for a possible credit rating upgrade as improving fiscal and external balances outweigh risks from the government’s flood control controversy

Sectoral indices ended mixed. Services climbed by 0.57% or 15.12 points to 2,662.06; holding firms increased by 0.46% or 23.44 points to 5,052.84; and property rose by 0.17% or 3.87 points to 2,208.49.

Meanwhile, mining and oil dropped by 1.08% or 190.07 points to 17,267.75; industrial retreated by 0.38% or 35.13 points to 9,095.71; and financials decreased 0.23% or 4.90 points to 2,121.09.

Value turnover went down to PHP 6.70 billion on Thursday with 1.07 billion shares traded from the PHP 6.94 billion with 1.13 billion issues exchanged on Wednesday.

Advancers outnumbered decliners, 98 versus 90, while 73 names were unchanged.

Net foreign selling was at PHP 22.65 million, a reversal of the PHP 279.62 million in net buying recorded in the previous session. — Sheldeen Joy Talavera