PSEi returns to 6,400 on stronger factory data

The Philippine Stock Exchange index (PSEi) rebounded on Tuesday, climbing back above the 6,400 level as investors took cues from stronger factory data and a steady growth outlook from Fitch Solutions, even as trading remained cautious before the release of inflation data.

The benchmark PSEi rose 1.66% or 104.88 points to close at 6,401.96. The broader all-share index increased 1.1% or 38.92 points to 3,548.44.

“The PSEi ended higher amid cautious trading as investors remained on the sidelines ahead of the inflation print, which is broadly expected to stay stable,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message.

He added that sentiment was supported by renewed optimism after Fitch Solutions unit BMI kept its growth outlook for the Philippines unchanged, signaling confidence in a recovery in 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, signaling confidence in a recovery in public and private investment despite recent growth disappointments,” Mr. Limlingan said.

He noted that the positive data points helped counter concerns over domestic uncertainties and eased market risk aversion.

The local bourse also drew support from January manufacturing data, which showed factory activity expanding at its fastest pace in nine months and outperforming regional peers.

“The local bourse rebounded after January factory activity climbed to a nine-month high and outpaced ASEAN (Association of Southeast Asian Nations) peers, supporting a cautiously optimistic outlook for a possible 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 expansion.

However, S&P Global warned that the improvement could be short-lived as business confidence remained subdued amid concerns over external demand and a fragile global economic environment.

Meanwhile, BMI kept its growth forecast for the Philippines at 5.2% this year despite last year’s underperformance. The projection remains within the government’s 5% to 6% goal.

“For now, we are maintaining our 2026 growth forecast at 5.2%, but the lower 2025 base makes this a more pessimistic outlook,” BMI said in a report on Monday, adding that it expects a recovery in both public and private investments to support growth.

All sectoral indexes ended higher. Mining and oil led the gains, jumping 4.61% to 17,128.95. Property rose 2.97% to 2,237.06, while services increased 1.72% to 2,666.75. Industrials climbed 1.22% to 9,048.38, financials advanced 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.

Value turnover fell to PHP 6.93 billion, with 1.15 billion shares traded, down from PHP 9.11 billion and 2.29 billion shares on Monday.

Net foreign buying eased to PHP 236.41 million from PHP 291.04 million in the previous session. — Alexandria Grace C. Magno