PSEi, peso extend recovery notwithstanding prevailing uncertainty

The PSEi closed Wednesday at 6,055.45, rising 0.49 percent, as the market extended its rebound on continued bargain hunting.

Investors took cues from Wall Street’s overnight gains while also reacting to domestic developments, particularly Congress’ approval of a proposal allowing the President to suspend or reduce fuel excise taxes during emergencies.

Trading subdued

Despite the advance, trading remained subdued, with net value turnover at P5.20 billion, reflecting cautious sentiment amid lingering global risks. Foreign investors stayed risk-off, posting net outflows of P664.05 million.

Sector performance was led by property (+1.74 percent), while banks lagged (-0.38 percent). Market breadth was positive, with 113 gainers against 81 losers. DigiPlus (PLUS) topped the index, climbing 4.51 percent to P18.08, while BDO was the main laggard, dropping 2.21 percent to P119.30.

Peso strengthens

On the currency front, the peso strengthened to P59.52 from P59.80 previously, marking a notable appreciation after hitting near-record lows. Based on BAP data, this move reflects a pullback in the US dollar across Asian FX markets. The dollar weakened as US Treasury yields eased and markets priced in a slightly softer path for Federal Reserve tightening.

Modest cooling in oil prices

Over the past 24 hours, forex markets were also influenced by a modest cooling in oil prices after earlier spikes tied to Middle East tensions, helping reduce immediate pressure on oil-importing economies like the Philippines.

However, reports still highlight persistent geopolitical risks, particularly around supply routes such as the Strait of Hormuz, which continue to underpin volatility.