The Philippine Stock Exchange Inc. (PSE) is mapping out additional reforms this year to improve market liquidity, widen investor and company participation, and enhance its regional competitiveness.

“We will continue to implement initiatives focused on deepening liquidity, broadening access for companies and investors, enhancing technology platforms, advancing sustainability, and enhancing our overall regional competitiveness,” PSE president and CEO Ramon Monzon said over the weekend.

“We will (also) continue to work closely with our regulator and other market participants to carry out our strategic priorities for the year,” he added.

On the first trading day of the year, the benchmark PSE index (PSEi) rose by 82.14 points or 1.4 percent to close at 6,135.06 on the first trading day of the year.

“The gain of 1.4 percent in the PSEi on the first day of trading augurs well for the much-awaited turnaround of our stock market in the coming year,” Monzon said.

The PSE MidCap and PSE Dividend Yield indices also advanced by 1.6 percent and 1.2 percent, respectively.

The All Shares index climbed 43.81 points or 1.3 percent. All sector indices posted gains of 1.3 percent to 3.1 percent, except for the Services sector index, which fell 1.0 percent. Value turnover reached P4.36 billion.

“The success of the administration in exacting accountability from the perpetrators of the corruption scandal and the institution of strong governance reforms are the principal catalysts needed in restoring investor confidence in the country and the stock market,” the PSE chief stressed.

Despite the market’s gains, analysts noted that the local bourse is coming off a losing year marked by weak trading activity and heavy net foreign selling, which reflected low investor confidence amid lingering economic issues.

“On a positive note, the local market has been holding its position above the 6,000 level,” said Japhet Tantiangco, Research Manager at Philstocks Financial Inc., in a separate comment.

He said the market remains at bargain levels following last year’s decline, noting that as of Friday’s close, the PSEi was trading at a price-to-earnings ratio of 10.3 times, below its 2020 to 2024 average of 17.3 times and the regional average of 18.4 times.

Tantiangco said bargain hunting may continue in the coming week, with investors expected to look ahead to upcoming inflation and labor market data, as well as movements in the local currency.

“A benign inflation print and strong labor market data are expected to give market sentiment a boost as they are seen to help in the local economy’s household consumption,” he said.