In a remarkable turn of events, the Philippines’ local shares and currency experienced a robust uptick in the trading session on January 23, 2024, buoyed by the optimistic performance of the United States markets and the promising outlook of the Philippine business process outsourcing (BPO) industry that is greatly fueled by the continuously growing outsourcing companies in the Philippines.
According to the PNA report, the benchmark Philippine Stock Exchange index (PSEi) reclaimed the 6,600 level, marking a significant gain of 38.41 points to close at 6,621.88. The broader All Shares also demonstrated improvement, surging by 13.74 points to reach the 3,493.56 level. Notably, all counters closed in positive territory, with the Property sector emerging as the standout winner, accruing a gain of 31.04 points.
Rizal Commercial Banking Corp. (RCBC) chief economist, Michael Ricafort, highlighted that Tuesday’s closing level was near six-month highs, echoing the positive sentiment observed in the US markets, which recently achieved new record highs.
One of the key factors contributing to the buoyancy of the local bourse was the pause in rate hikes. Additionally, the rosy outlook for the Philippine BPO industry played a pivotal role in bolstering investor confidence.
The Information Technology and Business Process Association of the Philippines (IBPAP) made a significant announcement on Monday, forecasting that full-time employment in outsourcing companies in the Philippines would surpass the two million mark by 2025. This announcement fueled optimism and heightened interest among investors, further contributing to the positive momentum in the market.
In terms of market performance, gainers outnumbered losers, with 100 stocks advancing compared to 88 declining, while 49 remained unchanged.
Simultaneously, the Philippine peso exhibited strength against the US dollar, concluding the day at 56.16, appreciating by 0.17 from the previous close of 56.33. Although the currency pair traded within the range of 56.10 to 56.44, the average level for the day settled at 56.30 to the greenback. The peso opened weaker at 56.35, compared to Monday’s starting level of 55.95.
Despite the lower trade volume, which reached USD1.40 billion from the previous day’s USD1.71 billion, the overall positive market sentiment was palpable, signaling a bullish outlook for the Philippines in the coming days.
Investors are closely monitoring developments in the BPO sector, recognizing the growing significance of outsourcing companies in the Philippines as a key driver of economic growth in the country. As the industry continues to expand, it is expected to play a pivotal role in sustaining the positive momentum observed in the country’s financial markets.