Rally extends for 4th day as tensions ease

The bellwether Philippine Stock Exchange index (PSEi) prolonged its winning streak for the fourth consecutive session on Thursday, climbing 77.62 points or 1.22 percent to settle at 6,408.27 — its highest close in nearly a month and among the strongest since 10 January 2025.

The continued rally was fueled by improved sentiment across global financial markets amid easing geopolitical tensions.

Market optimism followed reports of a tentative ceasefire between Israel and Iran, announced by US President Donald Trump, which helped calm investor nerves and sparked a global risk-on mood.

Michael Ricafort, chief economist at Rizal Commercial Banking Corporation, noted that U.S. stock markets rose again overnight by 0.8 to 1 percent, pushing the S&P 500 near record territory.

Luis Limlingan, head of sales at Regina Capital Development Corporation, added that bargain-hunting lifted the local bourse, with gains spread across key sectors.

“The PSEi rose as investors picked up bargains across key sectors, supported by a calmer external backdrop and stable domestic conditions,” Limlingan said.

He also pointed out that gold prices dipped on Thursday due to waning safe-haven demand and uncertainty over the Federal Reserve’s next rate move, while oil prices rose on lower US inventories and a weaker dollar.

In the currency market, the peso opened at P56.65 against the U.S. dollar and strengthened throughout the day to close at P56.57, with an average trading rate of P56.581, based on data from the Bankers Association of the Philippines.

Softer oil prices

Relief is also on the horizon for motorists as fuel prices are expected to go down next week, offering a welcome break after this week’s hefty increase.

Based on four-day trading in the Mean of Platts Singapore, the international benchmark adopted by the deregulated downstream oil sector, the Department of Energy projects a rollback of around P1 to P1.40 per liter for gasoline, P1.60 to P2.10 for diesel, and P2.00 to P2.20 for kerosene.

“The bearish factor that counterbalanced the bullish price last week is the announcement of President Trump of a possible ceasefire between Israel and Iran, thus crude oil future extends drop,” Department of Energy (DoE) Oil Industry Management Bureau director Rodela Romero said in a message on Friday. 

In a separate comment, Leo Bellas, president of Jetti Petroleum Inc. noted that “concerns over Middle East supply disruption eased following the ceasefire, with geopolitical risk premium on prices dropping sharply.”

“The market’s focus returned to fundamentals with the de-escalation of the conflict, with prices recovering from the drop early this week on the back of higher demand,” Bellas added.

The prospect of easing geopolitical tensions has helped temper global oil prices, reversing the sharp upward pressure that had been seen in recent weeks. Earlier this week, local pump prices rose by P3.50 per liter for gasoline, P5.20 for diesel, and P4.80 for kerosene. 

Final price adjustments will be announced by oil companies on Monday, and take effect on Tuesday.