Market recovers while peso sinks to new record low, again

The Philippine Stock Exchange index (PSEi) recovered on Tuesday, closing at 5,948.94, up 1.35 percent, as the local market staged a technical rebound driven by bargain hunting and cautious optimism over potential diplomatic efforts to ease energy supply risks.

Reports that the Philippine government is pursuing diplomatic talks with Iran to ensure the safe passage of oil shipments bound for the country through the Strait of Hormuz heavily factored into somewhat improved investor sentiment.

Palace Press Officer Claire Castro said President Ferdinand Marcos Jr. has directed the Department of Foreign Affairs to engage Tehran.

Bilateral arrangements

The planned discussions come as Iran continues to restrict access to the key oil chokepoint amid the ongoing conflict, prompting countries reliant on Middle East crude — including the Philippines — to seek bilateral arrangements to secure supply routes.

On renewed optimism and bargain hunting, trading activity picked up significantly, with net value turnover reaching P8.77 billion, signaling stronger participation after several sessions of subdued trading. However, foreign investors remained net sellers, recording P712.33 million in outflows, underscoring persistent risk aversion.

Sectoral performance was broadly positive, led by Mining & Oil, which rose 2.53 percent and continued to benefit from elevated global crude prices. The Services sector, down 0.43 percent, was the lone decliner. Market breadth improved, with 124 advancers against 79 decliners.

Among index stocks, Century Pacific Food Inc. led gains, up 5.42 percent, while China Banking Corp. lagged, down 1.23 percent, reflecting a mix of defensive rotation and continued pressure on financials.

Peso continues to slide

Despite the equity rebound, the peso continued to slide, hitting a fresh record low of P60.73 per US dollar, weakening from the previous record of P60.69.