PSEi rallies as inflation hits 9-year low in 2025

MANILA, Philippines — The stock market rallied yesterday as investors gobbled up more shares following reports that the country’s inflation for 2025 stayed below the government’s target.

The benchmark Philippine Stock Exchange index (PSEi) yesterday climbed by 2.49 percent, or 153.38 points, to settle at 6,317.91, keeping a growth record in the opening days of 2026.

The broader All Shares index also grew by 0.97 percent, or 34.61 points, to close at 3,588.35.

Regina Capital Development Corp. head of sales Luis Limlingan said investors were encouraged by the latest inflation results.

The Philippine Statistics Authority reported that inflation stood at 1.8 percent in December 2025, staying within the government target range of two to four percent.

Further, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said there is still a chance of another rate cut in February, although unlikely. He noted that if the economy grows by less than five percent again, doors are open for another monetary easing.

“The PSEi climbed sharply as strong buying interest prevailed after the release of inflation figure, which still falls below BSP’s range,” Limlingan said.

“Investor sentiment was also supported by BSP governor’s signal that another rate cut remains possible in February should economic growth fall short of expectations,” he added.

Investors traded P8.31 billion worth of shares, with winners beating losers, 141 to 72, while 50 issues were unchanged.