PSEi gains, peso stable on first trading day of 2025

The Philippine Stock Exchange index (PSEi) opened the year with a positive performance, advancing by 0.33% to close at 6,550.39 on Thursday. The broader All Shares index also registered a modest uptick of 0.18%, finishing at 3,755.10.

Despite mixed sectoral performances, investors showed cautious optimism, with Financials and Services leading the gains at 0.84% and 1.69%, respectively. However, Industrial, Holding Firms, Mining and Oil, and Property sectors recorded declines. Market breadth reflected a closely contested session, with 97 decliners edging out 94 gainers, while 47 issues remained unchanged.

Luis Limlingan, head of sales at Regina Capital Development Corp., noted that investors are preparing for a full year ahead and are closely watching the release of key economic indicators, such as the December S&P Global Manufacturing Purchasing Managers’ Index (PMI) and the November Producer Price Index (PPI). The Manufacturing PMI, released on the same day, improved to 54.3 in December from 53.8 in November, signaling stronger manufacturing activity and supporting market sentiment.

On the currency front, the peso traded sideways, closing at 57.91 to the US dollar, slightly weaker than the 57.85 finish recorded on Dec. 27, 2024. The local currency opened at 57.9 and moved within a range of 57.78 to 58.04, with an average trading rate of 57.88 for the day. Trading volume declined to USD1.19 billion from USD1.52 billion during the last session of the previous year.

The improved PMI data reflects robust economic activity in the manufacturing sector, while the peso's relative stability suggests a degree of resilience in the financial markets. Analysts remain cautiously optimistic as 2025 begins, with key domestic and global factors likely to influence market movements in the months ahead.

As investors digest the latest economic data and adjust to the new year’s trading environment, the focus will remain on external developments, domestic policy adjustments, and corporate earnings reports that could set the tone for the rest of the year. With a promising start, market participants are hopeful for sustained growth in the Philippine economy and financial markets.