Local shares ended the week in the green Friday on hopes the Bangko Sentral ng Pilipinas will continue its easing cycle to stimulate the softening economy.
The 30-company Philippine Stock Exchange index (PSEi) added 27.47 points, or 0.44 percent, to close at 6,348.14. The broader all-shares index ended flat at 3,607.00.
Meanwhile, the peso continued to depreciate, closing at 59.245 against the U.S. dollar Friday, compared with 59.17 on Thursday.
Analysts said investor sentiment is being boosted by expectations of further rate cuts in the first half of the year. This prediction is supported by recent data showing inflation settled at 1.7 percent in 2025, better than the government’s 2 percent to 4 percent target.
Regina Capital Development Corp. head of sales Luis Limlingan said market sentiment was also buoyed by a United Nations report projecting faster economic growth for the country in 2026 and 2027.
“This upbeat outlook helped sustain investor confidence and supported the index’s gains,” Limlingan said.
Four of the six sectoral indices ended in positive territory, led by services, which advanced 1.03 percent, and mining and oil, which increased 0.70 percent. Financials and holding firms also went up 0.70 percent and 0.40 percent, respectively. On the other hand, property dropped 0.55 percent and industrials fell 0.17 percent.
Trading was active, with value turnover reaching P6.11 billion. Decliners edged out gainers, 114 to 92, while 64 stocks closed unchanged. Foreign investors remained net buyers with inflows of P320.68 million.
Asian stock markets were mixed Friday after a two-day stutter as traders look ahead to the release of crucial US jobs data and a possible Supreme Court ruling on Donald Trump’s sweeping global tariffs.
A Beijing report on rising Chinese consumer prices and Chinese AI startup MiniMax’s soaring market debut in Hong Kong provided a boost to Shanghai and Hong Kong stocks.
Equities have largely enjoyed a solid start to the new year, with Seoul hitting several record highs this week, thanks to optimism over the tech sector and earnings.
But focus is now on the outlook for US interest rates, with closely watched non-farm payrolls figures due out later in the day. Traders will be poring over the figures as they could play a key role in the Federal Reserve’s decision-making leading up to its next policy meeting at the end of the month.
The central bank indicated last month that its next move could be a pause — after three successive cuts — though analysts said that a big downside miss could revive talk of another reduction. A much bigger gain than expected could also deal a blow to such hopes.
Still, Matt Weller at City Index said: “Traders have relatively high confidence that the Federal Reserve will pause its rate cutting cycle this month, and only a dramatic deterioration in the labour market (such as an outright decline in jobs or unemployment rising to 4.7 percent) could shake that confidence.
“As a result, the market reaction to the release could be relatively limited.”
Wall Street ended Thursday on a mixed note, with observers pointing out signs traders were shifting their positions from tech — which led last year’s rally to multiple records — and into smaller cap firms.
But Asia enjoyed a more positive run.
Tokyo, Singapore, Seoul, Bangkok and Manila all rose, though there were losses in Wellington, Taipei, Mumbai and Jakarta.
London, Paris and Frankfurt edged up at the open.
Hong Kong and Shanghai were helped by figures showing Chinese inflation rose more than expected last month and extended a period of growth following months of deflationary pressure.
The 0.8 percent increase in consumer prices marks the fastest pace since February 2023, though analysts pointed out that the increase was mainly down to food costs, masking broader weaknesses.
Chinese AI startup MiniMax soared as much as 78 percent on its Hong Kong debut, a day after rival Zhipu AI’s enjoyed its own strong first day, in a sign that healthy investor demand is rewarding the country’s rapidly developing sector.
Sydney was marginally lower, with Australian-British mining giant Rio Tinto falling more than six percent after it confirmed merger with Swiss rival Glencore.
The US Supreme Court’s possible ruling on the legality of many of Trump’s punishing tariffs is also keeping investors occupied.
A ruling against the government could have a huge impact on its economic and fiscal plans.
Oil prices rose, having rallied more than three percent Thursday, after Trump threatened to hit Iran “very hard” if it killed protesters amid mounting civil unrest over an economic crisis.
The gains reversed losses earlier in the week that came after the president said Venezuela would ship millions of barrels to the United States following the toppling of the South American country’s leader at the weekend. With AFP
