Stocks bounce back as market cheers higher FDI inflow

The stock market bounced back yesterday as investors cheered the country’s November net inflow of foreign direct investments.

After opening the week in the red, managed to climb by 0.30 percent or the Philippine Stock Exchange index 20.10 points to finish at 6,827.92 on Tuesday.

Similarly, the broader All Shares index finished in the green at 3,567.88, up 0.30 percent or 10.82 points.

China Bank Capital Corp. managing director Juan Paolo Colet said the local index rose as investors digested data that the country’s net inflow of foreign direct investments in November 2023 rose to its highest since December 2021.

The Bangko Sentral ng Pilipinas reported Monday that the net inflow of FDIs jumped by 27.8 percent to $1.05 billion in November 2023 from $820 million in November 2022.

However, the net inflow of FDIs remained subdued, slipping by 13.3 percent to $7.58 billion from January to November last year versus the previous year’s $8.74 billion, due to the lingering impact of high inflation and low growth prospects globally.

“Market participants also started to position ahead of the release of the US January consumer price index inflation print that could influence trading for the rest of the week,” he said.

Philstocks Financial research and engagement officer Mikhail Plopenio said gains were tempered as many anticipate the US’ inflation for January, which could provide clues on the Federal Reserve’s next steps concerning policy rates.

Plopenio said yesterday’s net market value turnover of P4.6 billion was higher than the year-to-date average of P4.59 billion.

Foreigners were net buyers with net inflows amounting to P81.06 million.