The Philippine stock market bounced back on Tuesday as investors welcomed the news of the country’s increased foreign direct investment (FDI) inflow in November.
Despite starting the week on a downward trend, the Philippine Stock Exchange index rose by 0.30 percent or 20.10 points to close at 6,827.92. Similarly, the broader All Shares index ended in positive territory at 3,567.88, up 0.30 percent or 10.82 points.
China Bank Capital Corp.’s managing director, Juan Paolo Colet, attributed the local index’s rise to the news of the country’s highest net inflow of foreign direct investments since December 2021.
The Bangko Sentral ng Pilipinas reported a 27.8 percent increase in the net inflow of FDIs to $1.05 billion in November 2023 compared to November 2022. However, the overall net inflow of FDIs for January to November 2023 stood at $7.58 billion, reflecting a 13.3 percent decrease from the previous year, primarily due to global factors such as high inflation and low growth prospects.
Colet noted that market participants also positioned themselves ahead of the release of the US January consumer price index inflation data, which could impact trading for the rest of the week.
Mikhail Plopenio, a research and engagement officer at Philstocks Financial, mentioned that while gains were observed, investors remained cautious pending the US inflation report, which would offer insights into the Federal Reserve’s future policy decisions.
Yesterday’s net market value turnover of P4.6 billion surpassed the year-to-date average of P4.59 billion, with foreigners showing net inflows of P81.06 million.
