Philippine stocks surged on Tuesday as investor sentiment improved following the signing of the implementing rules and regulations (IRR) of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.
Meanwhile, the peso weakened further against the US dollar.
The Philippine Stock Exchange Index (PSEi) jumped 1.69 percent to close at 6,094.96, marking one of its strongest gains in recent weeks. The broader All Shares index also advanced 1.88 percent to 3,678.94.
“Investors welcomed the new IRR on corporate tax cuts, which could improve business confidence and spur economic growth,” said Luis Limlingan, head of sales at Regina Capital Development Corporation.
Market performance overview
With the exception of the mining and oil sectors, all major industry groups ended up in positive territory. The Property sector led the gains with a 3.32 percent increase, reflecting optimism about potential economic expansion and higher demand for real estate.
Market breadth was positive, with 101 stocks advancing against 72 decliners, while 64 remained unchanged.
Peso weakens amid stronger dollar
Despite the stock market rally, the Philippine peso slipped against the US dollar, closing at 58.15 on Tuesday, weaker than Monday’s 58.03 finish.
The peso opened at 58.08 and fluctuated between 58.08 and 58.29 throughout the session.
Trading volume surged to USD 1.67 billion, up from the previous session’s USD 1.16 billion, indicating increased foreign exchange activity amid concerns over global interest rates and inflation.
Investor outlook
The market remains cautiously optimistic, with analysts pointing to potential benefits from tax reforms under the CREATE MORE Act. However, concerns over currency depreciation, inflation, and global economic trends continue to pose challenges.
“The next key factor will be how businesses respond to the tax incentives and whether this leads to increased investments,” Limlingan added.
Analysts expect the stock market to maintain its positive momentum if economic policies favor corporate growth. At the same time, the peso’s performance will largely depend on external factors such as US monetary policy and global market movements.
