The PSEi finished Wednesday at 6,394.77, up 0.41 percent, as bargain hunting lifted the market after three straight days of declines. Optimism was supported by firmer Wall Street cues, the continued strengthening of the peso, and growing expectations that the Bangko Sentral ng Pilipinas (BSP) could deliver another rate cut at its upcoming policy meeting.

Overnight, US equities closed higher, providing a constructive lead for Asian markets. The S&P 500 gained roughly 0.6%, the Dow Jones Industrial Average rose about 0.4%, and the Nasdaq Composite advanced close to 0.8%, driven primarily by strength in large-cap technology and communication services stocks. The move higher was supported by easing US Treasury yields and renewed risk appetite following recent volatility tied to inflation concerns.

The rally followed softer US economic data and stable bond market conditions, which helped temper fears of renewed Federal Reserve tightening. Investors interpreted recent data releases as reducing the likelihood of an imminent rate hike, allowing growth stocks — particularly in tech — to recover. Lower yields tend to boost equity valuations and weaken the US dollar, which in turn supports emerging-market assets.

Renewed optimism that the BSP will reduce its key policy rate — which may or may not be announced tomorrow at the central bank headquarters at 3 p.m. — also supported sentiment. Multiple economists and analysts project the BSP to reduce the target reverse repurchase rate by up to 50 basis points in response to the economic downturn of 2025, with most predicting the first cut will occur at tomorrow’s meeting. However, with the central bank in its quiet period, investors remained on the sidelines, awaiting the BSP’s final decision.

As such, trading remained subdued, with net value turnover at P5.13 billion, below the year-to-date average of P6.32 billion. Foreign investors were net buyers, registering P467.67 million in net inflows.

Sector performance was largely positive, with Services leading the gains (+1.65%), while Industrials was the lone decliner (-0.72%). Market breadth was slightly positive, as advancers edged decliners, 101 to 93.

Among index names, DigiPlus Interactive Corp. (PLUS) emerged as the top gainer, climbing 4.80% to P14.42. As a gaming and digital entertainment company (operator of BingoPlus and ArenaPlus), PLUS is classified under Services, and sectoral inflows naturally supported the stock. When investors rotate into higher-beta consumer and digital plays during risk-on sessions, PLUS typically attracts speculative and short-term capital.

The stock also appears to be extending a technical rebound following recent consolidation. After prior volatility, bargain hunters stepped in as sentiment improved alongside peso strength and firmer global cues. DigiPlus has also been trading with elevated liquidity in recent weeks, making it a preferred vehicle for active traders.

Meanwhile, Semirara Mining and Power Corp. (SCC) remained under pressure, plunging 13.60% to P22.55 and ending as the session’s worst performer. The continued backslide of SCC follows the announcement by the Department of Energy last Sunday that the agency decided to auction SCC’s exclusive coal operations contract on its namesake island instead of extending it.

On the currency front, the peso strengthened further to P57.86 per US dollar, improving from the prior close of P57.98, largely driven by renewed weakness in the US dollar as Treasury yields declined over the past 24 hours.

Softer US economic indicators reduced expectations that the Federal Reserve would resume aggressive tightening, prompting investors to scale back long-dollar positions. When US yields ease, the interest rate advantage of dollar assets narrows, making emerging-market currencies like the peso relatively more attractive.

At the same time, improved global risk sentiment encouraged portfolio flows back into Asian assets. Regional currencies such as the Thai baht and Malaysian ringgit also strengthened, signaling broad-based dollar softness rather than a purely domestic driver.

Positioning ahead of upcoming central bank meetings — including the BSP — likely amplified the move, as traders adjusted exposures in anticipation of policy signals. The combined effect of lower US yield pressure, firmer regional FX, and rotation into emerging markets pushed the peso to fresh multi-week highs.