The month of November saw the PSEi slowly recover after the government announced lower October inflation of 4.9 percent, and a higher 5.9-percent GDP growth for the third quarter. The announcements were made on November 7 and 9, respectively.

Philstocks Financial, Inc. assistant research manager Claire Alviar said on November 6 that stock market investors were already expecting better inflation and GDP figures even before these were announced.

“Moreover, upcoming economic data releases including, but not limited to, inflation rate and GDP growth rate, which are both expected to be better than the previous report, helped lift the market,” Alviar said on November 6, 2023 or the third straight day the PSEi went up and closed at 6,078,.03.

However, the PSEi average for November was only 0.01-percent higher than October, or 6,192.43 points.

It was in December that the PSEi made a recovery to the 6,500-point territory, as the November inflation rate went down further to 4.1 percent, and the BSP and the US Federal Reserve did not announce policy rate hikes as 2023 ended.

Also, the December PSEi average of 6,386.89 points is a 3.14-percent increase compared to the November stock index average of 6,192.43 points.

While the December PSEi average is lower than the stock index averages from January to July, the investor sentiment in the Philippine stock market obviously improved because of the better economic prospects for this year.

“The index returned above the 6,500 level in thin trading as investor sentiment remained positive about the local market’s prospects for 2024,” China Bank Capital Corp. managing director Juan Paolo Colet said on December 28, 2023.

The traditional holiday spending that results in more consumer spending can also boost GDP figures in the fourth quarter.

“While the Christmas spirit is felt as early as September, Christmas spending in the FMCG (Fast-moving consumer goods) segment typically starts in December when Filipinos receive additional disposable income through 13th month bonuses and other incentives,” said Nino Nierva, account director, Worldpanel Division, Kantar Philippines.