Market, peso improve entering Holy Week break

The Philippine Stock Exchange index (PSEi) extended its winning streak on Wednesday, 1 April, closing at 5,998.68, up 0.84 percent, as the peso snapped its losing streak ahead of the Holy Week trading break.

Market sentiment improved on expectations of a possible de-escalation in Middle East tensions, following signals from US leadership that military engagement with Iran may ease in the coming weeks. Net value turnover reached ₱7.45 billion, while foreign investors remained cautious, posting net outflows of ₱1.20 billion.

Sectoral performance was mostly positive, led by Mining and Oil, which surged 6.37 percent on elevated global crude prices. Industrials was the lone decliner, down 1.38 percent. Advancers outpaced decliners, 112 to 87, indicating selective accumulation rather than a broad risk-on rally. Among index stocks, Ayala Corp. rose 6.06 percent, while Century Pacific Food declined 4.29 percent.

The peso strengthened to ₱60.16 per US dollar from Tuesday’s close of ₱60.748, recovering after hitting record lows earlier in the week. Intraday trading showed a weighted average of ₱60.327, with stronger afternoon pricing near ₱60.29, reflecting sustained demand for the local currency.

The rebound follows a week of pressure driven by oil price shocks and global risk aversion. The peso previously weakened to a record ₱60.74 as markets priced in potential disruptions in the Strait of Hormuz, a key route for about one-fifth of global oil supply.

Rising oil prices, which breached $100 per barrel, have raised concerns over the Philippines’ import bill and inflation outlook, given its reliance on imported fuel. Safe-haven demand also boosted the US dollar, contributing to weakness across Asian currencies.

Despite the recovery, underlying risks remain, with the government declaring a national energy emergency and moving to secure fuel supply. The local bourse will reopen on Monday, 6 April, after the Holy Week break.