The Philippine Stock Exchange Index (PSEi) advanced for a second consecutive day on Wednesday, closing up 0.78 percent at 6,355.78, as the market drew support from the appreciation of the peso against the US dollar.

Gains were capped at times by cautious trading, with investors waiting for the US Federal Reserve’s policy decision and the release of the Philippines’ Q4 and full-year 2025 GDP data by the Philippine Statistics Authority tomorrow.

Trading firm

Trading activity was firm, with net value turnover at P6.55 billion, while foreign investors were net buyers, posting P463.37 million in net inflows. Sector performance was mixed: services led the market, rising 2.53 percent, while property stocks were the weakest, slipping 0.22 percent.

Market breadth was slightly negative, with losers edging gainers, 106 to 102. International Container Terminal Services, Inc. (ICT) topped the index gainers, climbing 4.12 percent to P645.00, while ACEN Corp. (ACEN) was the biggest laggard, dropping 5.10 percent to P2.79.

Driven by broad US dollar softness

The peso strengthened to P58.74 per dollar, improving sharply from P59.05 in the previous session. The move was driven by broad US dollar softness ahead of the Federal Reserve’s policy announcement, as markets pared back long-dollar positions and US Treasury yields eased.

Locally, the peso was also supported by continued foreign inflows into Philippine equities and lighter importer demand, as businesses stayed cautious ahead of the GDP release. Together, these factors boosted dollar supply and improved sentiment toward the peso, allowing it to recover meaningfully — though the currency remains sensitive to upcoming Fed guidance and domestic growth data.