The Philippine Stock Exchange index (PSEi) inched up 0.08 percent to close at 6,330.65 on Thursday, as market sentiment remained cautiously optimistic amid easing geopolitical risks and improving external conditions.

Investor confidence was buoyed by the continuing ceasefire between Israel and Iran, which helped pull down global oil prices. The local currency also showed strength, with the peso opening at P56.50 against the US dollar and closing at P56.05, based on data from the Bankers Association of the Philippines. The weighted average stood at P56.627.

However, gains in the local bourse were tempered by lingering uncertainties over the US Federal Reserve’s policy outlook. In his testimony before the US Congress, Fed Chair Jerome Powell maintained a cautious stance, signaling a wait-and-see approach as the US grapples with inflation and tariff-related concerns. Investors are closely watching for Friday’s release of the US personal consumption expenditures (PCE) inflation data.

“The PSEi closed slightly higher as easing Middle East tensions and Trump’s ceasefire reduced oil supply fears,” said Luis Limlingan, Head of Sales at Regina Capital Development Corporation.

“Attention turned to Friday’s US PCE inflation data, with Powell signaling a slight uptick but maintaining the Fed’s inflation stance. Locally, the May budget swung to a P145.2 billion deficit.”

Trading remained subdued, with net value turnover at P5.59 billion – still below the year-to-date average of P5.69 billion. Foreign investors were net sellers, registering net outflows of P598.85 million.

Among sectoral indices, property stocks led with a 1.30 percent rise, while the mining and oil sector fell by 1.37 percent. Market breadth was modestly positive, with 94 advancers edging out 76 decliners.