The Philippine Stock Exchange index (PSEi) bounced back on Tuesday, rising by 74.47 points or 1.20 percent to close at 6,292.75 — recovering from near two-month lows and marking one of its strongest closes in the past three months.

Investor sentiment improved following a tentative ceasefire announcement between Iran and Israel by U.S. President Donald Trump, which helped ease tensions in the Middle East and triggered a global pullback in oil prices.

“The decline in global crude oil prices is a positive development for the Philippine economy,” said Michael Ricafort, chief economist at Rizal Commercial Banking Corporation. 

“It could lead to rollbacks in local fuel pump prices and ease inflationary pressures, especially with the peso also strengthening against the dollar.”

In currency markets, the peso opened at 57.20 and closed at 57.16 against the U.S. dollar. The weighted average stood at 56.987, according to data from the Bankers Association of the Philippines. This marked an improvement from the previous trading day’s close of 57.58. A stronger peso and lower oil prices are expected to support the country’s external position and help curb rising import costs.

Ricafort also noted that dovish remarks from U.S. Federal Reserve officials have buoyed investor optimism, with Fed Fund Futures now pricing in 0.58 rate cuts for the remainder of 2025, slightly higher than the Fed’s own projection of 0.50 cuts.

Luis Limlingan, Head of Sales at Regina Capital Development Corporation, echoed the improved market sentiment, pointing out that both Philippine equities and Wall Street gained ground despite recent geopolitical tensions.

“Markets shrugged off Iran’s failed missile strike on a U.S. base in Qatar as there were no casualties. Oil prices dropped further on hopes of de-escalation, and investors are now turning their attention to Fed Chair Jerome Powell’s testimony before Congress,” Limlingan said.

He added that Powell is expected to face pressure to ease monetary policy, with some Fed officials already signaling potential cuts by July. Traders are also watching for key U.S. economic data including home prices and consumer confidence reports.

At home, total value turnover reached P5.62 billion, net of extraordinary block sales. Market breadth was positive, with 122 advancers outpacing 73 decliners, while 54 issues were unchanged.