Stocks rebound; peso hits new low

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January 16, 2026 | 12:00am

MANILA, Philippines —   The local stock market bounced back as investors cheered the World Bank’s latest growth forecast for the Philippines, while the peso slid to another all-time low amid expectations that the US Federal Reserve will keep interest rates higher for longer due to resilient economic data.

The benchmark Philippine Stock Exchange index climbed by 1.53 percent or 97.72 points, settling at 6,487.53.

The broader All Shares index also grew by 0.68 percent or 24.76 points to end yesterday’s session at 3,660.70.

Luis Limlingan of Regina Capital said buying pressure was renewed as investors engaged in bargain hunting following the recent pullback of the index.

Serving as catalyst for the market’s upbeat performance was the World Bank’s forecast that Philippine economic growth is poised to remain above five percent through 2027.

“The local bourse surged at the back of a massive foreign buying spree, after the World Bank forecast of a 5.3 percent GDP growth for 2026 renewed investors’ confidence in buying the Philippine consumer growth story,” AP Securities Inc. said.

Meanwhile, data from the Bankers Association of the Philippines showed that the local currency weakened by two centavos to 59.46 from its 59.44 finish on Wednesday, marking a new record low for the peso.

A trader said the peso closed lower as the dollar stayed well bid following strong US data, particularly producer price inflation and retail sales, which highlighted the continued resilience of the US economy.

The data reinforced expectations that the US Federal Reserve may keep policy rates unchanged in the coming months, dampening hopes for near term rate cuts.

“The local currency might continue to depreciate as statements from several Fed officials could solidify views of more cautious rate-cutting pace of the US central bank this year,” the trader said.