Philippine shares surged more than 2 percent Tuesday to close above the 6,300 level after the government reported full-year inflation settled below its target range, boosting expectations for future interest rate cuts.
The 30-company Philippine Stock Exchange index jumped 153.38 points, or 2.49 percent, to finish at a five-month high of 6,317.91. The broader all-shares index climbed 34.61 points or 0.97 percent to 3,588.35.
Meanwhile, the peso slid to 59.21 a dollar Tuesday from 59.13 Monday, following the release of December inflation report.
The Philippine Statistics Authority said Tuesday that the country’s full-year inflation rate hit 1.7 percent, below the government target range of 2 percent to 4 percent. While December inflation rose to 1.8 percent from 1.5 percent in November due to agricultural disruptions, analysts said the overall trend remains supportive of a more accommodative monetary policy.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the latest inflation data could support further interest rate cuts. He said the local index benefited from a continued start-of-the-year rally seen across several Asian markets that reached new record highs.
Fast-food giant Jollibee Foods Corp. led the index gainers, surging 14.50 percent to P210. The company announced plans to spin off its international business for a potential US listing in 2027.
The local rally mirrored a broader global upswing as investors tracked a record-breaking session on Wall Street. US markets were driven by bets on artificial intelligence and data showing a contraction in US manufacturing, which may provide the Federal Reserve room to ease policy.
In regional markets, Seoul’s Kospi surpassed the 4,500 level for the first time, supported by a rally in SK hynix and Hyundai. Hyundai shares jumped after the automaker unveiled its AI-powered humanoid robot, Atlas, at the Consumer Electronics Show in Las Vegas.
Saxo Markets Chief Investment Strategist Charu Chanana said in a commentary that global equities will likely look through geopolitical shocks unless they threaten supply chains or tighten financial conditions. Chanana noted that equities can continue to grind higher if earnings expectations and liquidity remain supportive, particularly in the tech sector.
Trading in Manila was active with value turnover reaching P7.37 billion. Foreign investors were net buyers with inflows of P1.25 billion. Advancers led decliners 141 to 72, while 50 stocks remained unchanged. With AFP
