Peso under P60 as market recovers

The Philippine Stock Exchange Index (PSEi) closed Tuesday at 5,936.20, up 0.63 percent, as the local market rebounded on bargain hunting after two consecutive days of decline. Trading remained subdued, with net value turnover at P4.78 billion, as investors stayed cautious amid lingering uncertainties surrounding the Middle East conflict.

Mixed developments

Market sentiment was influenced by mixed developments, with US President Donald Trump signaling possible de-escalation through “productive talks” with Iran and a postponement of strikes on Iranian energy facilities, although Iran denied such discussions. Foreign investors remained net sellers, recording P755.56 million in outflows.

Sector performance was mostly positive, with Mining & Oil leading gains (+3.40 percent), while Services was the only decliner (-0.49 percent). Market breadth was strong, with 129 advancers against 63 decliners. ACEN Corp. led the index gainers, rising 5.53 percent to P2.67, while China Banking Corp. was the worst performer, falling 2.02 percent to P65.50.

Peso moves back below P60/$ level

On the currency front, the peso appreciated to P59.95 from yesterday’s P60.30 close, moving back below the P60/$ level. Easing fears of immediate supply disruptions in the Strait of Hormuz led to some stabilization in oil prices, reducing pressure on oil-importing currencies like the peso.

Additionally, the dollar softened as US Treasury yields edged lower amid profit-taking and shifting expectations around the Federal Reserve’s rate path. Regional currencies, including the peso, benefited from this temporary relief rally.

Pressures remain

However, underlying pressures remain, as geopolitical risks persist and foreign fund outflows continue, suggesting that while the peso’s move to P59.95 signals short-term relief, volatility in global forex markets is likely to keep the currency near record weak levels.