Philippine stocks started the week on a positive note on Monday, 23 February, with the PSEi closing at 6,488.51, up 23.39 points, or 0.36 percent, as investors continued to welcome the recent monetary policy easing decision of the Bangko Sentral ng Pilipinas (BSP).

Last Thursday, the central bank’s Monetary Board resolved to reduce the target reverse repurchase rate (RRP) by another 25 basis points, citing manageable headline inflation, lower-than-expected investor confidence, and sluggish economic growth in 2025 due to the flood control scandal.

Investors welcomed the 

prospect of increased liquidity

With the RRP now at 4.25 percent, investors welcomed the prospect of increased liquidity in the country resulting from the BSP’s second key policy rate cut in three months. 

The last time the Monetary Board cut the RRP on 11 December saw the benchmark index post a similar gain of 0.35 percent, likewise driven by renewed optimism from positive macroeconomic signals from the BSP.

Market breadth on Monday was firmly positive, with 123 advancers against 69 decliners and 72 unchanged, on P6.12 billion in traded value across more than 867 million shares, suggesting steady but not aggressive participation.

Sector performance 

Sector performance was mostly constructive. Mining & Oil led the market, jumping 2.97 percent, supported by gains in resource names such as Apex Mining (APX), which climbed 5.33 percent, and Semirara Mining and Power Corporation, up 4.11 percent.

Property stocks also advanced 1.39 percent, helped by Ayala Land, which rose 1.88 percent, as easing domestic interest-rate expectations continue to support the sector’s outlook. Industrials (+0.98 percent) and Holding Firms (+0.73 percent) added to the index’s strength, with Ayala Corp. gaining 1.58 percent, while consumer bellwether Jollibee Foods jumped 3.27 percent.

Banks were mixed — Metrobank rose 1.18 percent, but BDO Unibank slipped 0.36  percent and Bank of the Philippine Islands fell 0.59 percent — keeping the Financials index nearly flat. The lone laggard was Services, down 0.59 percent, weighed by International Container Terminal Services, which declined 1.18 percent.

Peso back to P57 levels

Currency markets were also in focus, with the Philippine peso trading around P57.57 per dollar, appreciating from the P58.15 level last Friday and reflecting global dollar dynamics and current geopolitical risk conditions.

The dollar has remained relatively firm as investors continue to price in a slower pace of US Federal Reserve rate cuts, keeping US yields elevated and supporting demand for the greenback against emerging-market currencies.

At the same time, persistent geopolitical tensions — particularly conflicts affecting major shipping corridors and energy routes — have encouraged periodic safe-haven flows into the dollar. Oil prices remained volatile amid renewed tensions involving the US and Iran and concerns over supply disruptions in the Middle East, though prices stabilized after earlier gains. 

Steady oil outlook

A steadier oil outlook tends to support currencies of oil-importing economies like the Philippines by easing inflation and trade balance pressures.

In addition, Donald Trump’s recent circumvention of the US Supreme Court’s decision to strike down his tariffs disrupted the existing tariff framework, creating uncertainty about US trade policy and economic direction, which tends to reduce demand for the dollar.

Some traders interpreted the rollback of tariffs as potentially supportive for global trade, prompting flows into other currencies instead of the dollar. Episodes like this can temporarily support emerging-market currencies, including the Philippine peso, because a weaker dollar eases pressure on them.