Upbeat net FDI inflows buoy local index, peso ends sideways

By Kris Crismundo

February 13, 2024, 7:45 pm

MANILA – The latest data on the country’s net foreign direct investment (FDI) inflows boosted the Philippine Stock Exchange index (PSEi) on Tuesday’s trading, while the peso closed sideways returning to 55-level.

The benchmark PSEi increased by 20.10 points or 0.72 percent to 6,827.92, with the broader All Shares improving by 10.82 points to 3,576.88.

“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,” China Bank Capital Corp. managing director Juan Paolo Colet said.

The Bangko Sentral ng Pilipinas (BSP) reported Monday that net FDI inflows in November 2023 improved by 27.8 percent to USD1 billion, recovering from three straight months of decrements.

This brought the country’s total net FDI inflows from January to November 2023 to USD7.6 billion

“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,” Colet added.

All sectoral indices closed counters with gains, with the highest increase coming from Industrial which improved by 47.74 to 9,140.60.

Advancers surpassed decliners at 108 to 79, with 45 counters left unchanged.

“Net market value turnover for today stood at PHP4.60 billion, higher than the year-to-date average which is at PHP4.59 billion. Foreigners were net buyers with net inflows amounting to PHP80.96 million,” Philstocks Financial, Inc. research and engagement officer Mikhail Plopenio said.

Meanwhile, the peso finished sideways at 55.94 to a US dollar from a 56-close Monday.

It opened at 56 and traded between 55.91 and 56.05, bringing this day’s average rate at 55.97.

Volume of trade decreased to USD1.26 billion from USD947.75 million the previous day. (PNA)