Market, peso rebound amid MidEast uncertainty

The benchmark Philippine Stock Exchange Index (PSEi) closed Tuesday at 6,026.01, up 0.32 percent, as the market staged a modest rebound on bargain hunting following three consecutive days of declines.

The recovery was partly supported by Wall Street’s overnight gains, with investors selectively accumulating beaten-down names.

Trading relatively muted

Despite the uptick, trading remained relatively muted, with net value turnover at P5.60 billion, indicating that many market participants stayed cautious amid lingering uncertainties tied to the Middle East conflict.

Foreign investors continued to exit positions, posting net outflows of P563.22 million, underscoring persistent risk aversion toward emerging markets.

Sector performance was mixed. Services led the gains (+1.03 percent), supported by select consumer and telco names, while property declined (-0.86 percent) amid concerns over higher interest rates and weaker currency. Market breadth was nearly balanced (95 decliners vs 92 advancers), reflecting a tentative and selective recovery rather than broad-based buying.

JG Summit (JGS) emerged as top index gainer, climbing 3.59 percent to P26.00, while DigiPlus (PLUS) led the laggards, falling 3.89 percent to P17.30.

Peso appreciated

On the currency front, the peso appreciated to P59.80 from P59.87 previously, based on Bankers Association of the Philippines (BAP) data.

Intraday, the peso traded within a P59.65-P59.88 range, with a weighted average of P59.742, reflecting some stabilization after recent sharp depreciation. The US dollar eased slightly due to profit-taking and a dip in US Treasury yields, which gave regional currencies — including the peso — some room to recover.

Forex markets remain fragile

However, forex markets remain fragile. Safe-haven demand for the dollar has persisted as geopolitical tensions in the Middle East continue to escalate, particularly with ongoing risks to oil supply routes such as the Strait of Hormuz.

Elevated oil prices — closely monitored by global markets — pose a direct risk to oil-importing economies like the Philippines by fueling inflation and widening trade deficits.