PSEi recovers as FDIs surge to highest in 2 years
PHILIPPINE STOCKS rebounded on Tuesday after the central bank reported that November foreign direct investments (FDIs) surged to the highest in almost two years amid an improving economic outlook.
The benchmark Philippine Stock Exchange Index (PSEi) added 0.29% or 20.10 points to close at 6,827.92. The broader allshare index gained 0.3% or 10.82 points to 3,576.88.
“The local index rose as investors digested data that the country’s net inflow of FDIs in November 2023 rose to its highest since December 2021,” Juan Paolo E. Colet, managing director at China Bank Capital Corp., said in a Viber message.
FDI net inflows rose by 27.8% year on year to $1.048 billion in November, according to the Bangko Sentral ng Pilipinas.
The FDI surge was led by higher investments by nonresidents in debt instruments, which offset the decline in investments in equity capital and reinvestment of earnings, it said on Monday.
The market gains were tempered as investors awaited the release of US inflation data on Feb. 13, Mikhail Philippe Q. Plopenio, a research and engagement officer at Philstocks Financial, Inc., said in a Viber message.
The data would provide clues on the US Federal Reserve’s next policy moves, he added.
Sectoral indexes rose across the board, led by industrials that gained 0.52% or 47.74 points to 9,140.6, followed by mining and oil, which added 0.48% or 43.56 points to 8,962.45.
Holding companies rose by 0.48% or 31.25 points to 6,419.45, while the property index gained 0.29% or 8.74 points to 2,940.11. The financial index added 0.2% or 4.04 points to 1,959.84, while services gained 0.01% or 0.26 points to 1,721.10.
“Among the index members, Converge ICT Solutions, Inc. was at the top, climbing 4.33% to P10.12. Wilcon Depot, Inc. lost the most, dropping 1.53% to P22.55,” Mr. Plopenio said.
Value turnover increased to P4.95 billion with 557.12 million issues changing hands, from 510.17 million shares worth P4.19 billion on Monday.
Advancers beat decliners 108 to 79, while 55 stocks were unchanged. Net foreign buying dropped to P81.06 million from P455.58 million a day earlier.