The flagship Philippine Stock Exchange Index (PSEi) closed Tuesday at 6,547.98, rising 0.92 percent, as the local market extended its gains on improved investor sentiment.

Optimism over the peso’s recent resilience — recovering to the P57 level from record weakness against the greenback in January — and expectations of stronger fourth-quarter and full-year 2025 corporate earnings encouraged buying.

Trading activity was relatively brisk, with net value turnover reaching P6.91 billion, above the year-to-date average of P6.25 billion. Foreign investors remained supportive, registering net inflows of P406.68 million and helping the local bourse extend Tuesday’s rally.

Positive sector performance

Sector performance was largely positive. Property stocks were the only decliners, slipping 0.41 percent, while services led the market with a 2.18 percent gain. Overall market breadth was slightly positive as advancers edged decliners, 100 to 98.

JG Summit Holdings (JGS) finished as the day’s best performer, rising 4.71 percent to P31.10 largely on renewed optimism surrounding its earnings recovery and improving prospects for its core subsidiaries. Investors have been positioning ahead of the release of the conglomerate’s 2025 full-year results, with expectations that its exposure to aviation through Cebu Pacific, as well as improving consumer demand benefiting Robinsons Retail and Universal Robina, will continue to lift profitability.

Airline stocks globally have also been buoyed by resilient travel demand and easing fuel price volatility, which tends to support sentiment toward JGS. Toby Magsaysay

In contrast, Ayala Land (ALI) emerged as the session’s worst performer, falling 5.08% to P20.55 as investors turned cautious on the property sector despite the broader market rally. The sector has been facing concerns over elevated interest rates and slower real estate demand, particularly in residential segments.

Funds rotated into other sectors

Some traders also appeared to be locking in gains after the stock’s earlier rebound, especially as funds rotated into other sectors such as services and conglomerates showing stronger near-term momentum.

ALI and parent company Ayala Corp. are also set to be relegated from the international FTSE Russell benchmarks due to new market capitalization data, which, while reflecting broader weakness in the Philippine equity market relative to regional peers, may result in short-term outflows for both companies.

However, the impact is expected to be limited, with Philippine equities relying more on active funds and local institutions.

Peso slumped a bit

Meanwhile, the peso weakened from P57.57 to about P57.75 per dollar as the US dollar strengthened in global trading.

The US Dollar Index (DXY) climbed back above roughly 105, while 10-year US Treasury yields moved toward around 4.2–4.3 percent, reflecting expectations that US interest rates may stay elevated for longer.

Stronger US economic data and cautious messaging from Federal Reserve officials helped lift the dollar, prompting funds to rotate back into dollar assets and away from emerging-market currencies such as the peso.

At the same time, oil prices moved higher, adding pressure on the Philippine currency. Brent crude traded around the mid-$80 per barrel range, supported by renewed geopolitical concerns in the Middle East, including tensions involving the United States and Iran and continued risks around shipping routes in the region.

For an oil-importing economy like the Philippines, higher crude prices increase demand for dollars to pay for imports.