PSEi gains as OFW remittances rise

Local shares rebounded on Wednesday, with the Philippine Stock Exchange index (PSEi) gaining 0.99% to close at 7,299.70, driven by improved investor sentiment following the Bangko Sentral ng Pilipinas' data on overseas Filipino worker remittances.

The central bank reported that cash remittances, coursed through bank channels, rose 2.9% to $2.747 billion in October, marking the second consecutive month of year-on-year growth.

This increase in remittances indicates a return to normalcy after the economic disruptions caused by the pandemic.

Japhet Louis O. Tantiangco, Senior Research Analyst at Philstocks Financial, Inc., noted that the market sentiment was boosted by the latest central bank data.

Christopher John Mangun, Research Head at AAA Southeast Equities, Inc., echoed this sentiment, emphasizing that remittance growth signals a recovery.

However, for the first ten months of the year, cash remittances slipped 0.9% to $24.633 billion compared to the same period in 2019.