Market rebounds again as peso inches to P59

The benchmark Philippine Stock Exchange Index (PSEi) climbed 72.69 points or 1.15 percent to close at 6,380.53 on Thursday afternoon, as investors returned to the market to bargain-hunt following the previous session’s steep decline. 

While overall sentiment remains subdued due to higher global oil prices and a weakening currency stemming from the Middle East conflict, investors took the opportunity to “buy the dip”—purchasing stocks at lower valuations with the expectation of selling them at higher levels once markets stabilize.

A similar scenario occurred last Tuesday, when the local bourse posted a modest 0.29 percent gain as investors bought back into the market after Monday’s reopening saw the PSEi plunge 2.79 percent—the largest single-day decline in 2026 so far—amid concerns over the economic fallout from the Middle East conflict.

Finance Secretary Frederick Go said the government is exploring options for a temporary reduction in oil excise taxes should Dubai crude oil reach $80 per barrel. The benchmark—commonly used for pricing oil exports to Asia—recently rose above that level to $80.39 due to supply concerns linked to the Middle East conflict and risks to key shipping routes such as the Strait of Hormuz.

Investors interpreted these signals as a positive indication of potential pro-economy government measures, helping ease some of the prevailing pessimism and reviving investor appetite.

Backed by renewed buying interest, all sectoral gauges ended in positive territory, led by Services (+1.87%), followed by Mining & Oil (+1.92%), Industrial (+1.32%), Financials (+0.91%), Property (+0.71%), and Holding Firms (+0.43%). Market breadth was firmly positive, with 125 advancers against 72 decliners, while 59 issues were unchanged. Trading activity reached P6.25 billion in value turnover, with 1.91 billion shares traded across 82,748 deals.

Among index movers, DigiPlus Interactive Corp. (PLUS) gained about 6.7 percent to P18.08 to lead the blue chips. International Container Terminal Services Inc. (ICT) climbed P13.00 to P728.00, while Jollibee Foods Corp. (JFC) advanced 2.2 percent to P200.00. BDO Unibank Inc. (BDO) rose 2.7 percent to P129.50, and Universal Robina Corp. (URC) added 1.5 percent to P72.90, helping lift the benchmark. Meanwhile, Bank of the Philippine Islands (BPI) led the decliners, slipping 0.27 percent to P110.20 per share.

Despite the rebound in equities, the peso weakened to P58.63 per dollar, depreciating from P58.57 in the previous session, based on Bankers Association of the Philippines data. The currency edged closer to the P59 level as the U.S. dollar strengthened globally, with the U.S. Dollar Index hovering above 104, supported by expectations that the Federal Reserve will keep U.S. interest rates elevated for longer.

Higher U.S. rates increase returns on dollar-denominated assets, prompting global investors to shift funds toward the United States and away from emerging market currencies such as the peso.

Meanwhile, U.S. Treasury yields remained firm near 4.2 percent on the 10-year note, drawing capital toward dollar assets. Oil prices also stayed elevated—Brent crude trading around $81 per barrel and West Texas Intermediate (WTI) near $77—adding pressure on the peso given the Philippines’ status as a net fuel importer.

Continued uncertainty surrounding regional conflicts has supported both oil prices and safe-haven demand for the dollar, amplifying upward pressure on the greenback.