The Philippine Stock Exchange Index (PSEi) surged to one of its strongest levels in six months on Tuesday, February 3, fully wiping out losses triggered by corruption concerns involving billions worth of flood control projects aired during last year’s State of the Nation Address (SONA), according to Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort.
The benchmark PSEi jumped by 104.88 points, or 1.67%, to close at 6,401.96, marking its highest finish since January 19, 2026 and among the strongest levels since July 25, 2025.
Ricafort said the rally effectively erased all declines recorded after the July 28, 2025 State of the Nation Address, when President Ferdinand Marcos Jr. first exposed anomalies in flood-control projects that rattled investor sentiment at the time.
“The PSEi corrected slightly lower but went up by more than 100 points for the second day in three trading days, closing at new two-week highs and among the highest in six months,” Ricafort said.
He noted that the index is again trading closer to its recent intraday peak of 6,494.10 recorded on January 16, 2026, which he described as a positive technical signal after months of volatility tied to governance and political concerns.
Ricafort said the rebound was supported by the Department of Finance’s (DOF) signal of a ₱1.4-trillion spending plan for the first quarter of 2026, which investors expect to help lift economic growth and restore confidence.
External factors also contributed to the market’s advance, including overnight gains in U.S. equities, easing global oil prices, stronger-than-expected U.S. manufacturing data, and a relatively stable peso near ₱58.90 to the dollar, he added.
“The PSEi has consistently traded above 6,000 for more than a month, which is already a positive signal,” Ricafort said, adding that sustained governance reforms and credible anti-corruption measures remain key to keeping the market’s recovery intact as investors eye resistance levels between 6,400 and 6,500.
