Stocks rise slightly despite higher March inflation

The Philippine Stock Exchange index (PSEi) eked out a marginal gain on Tuesday, closing at 5,957.87, up 0.16 percent, as bargain hunting offset cautious sentiment following the release of March inflation data, which came in at 4.1 percent — slightly above the government’s 2 to 4 percent target range.

Inflation accelerated by 1.7 percentage points from the previous month, driven mainly by the impact of the Middle East conflict on domestic oil prices, which remain firmly in the triple-digit-per-liter range. While the market traded lower by midday, a late-session rally fueled by bargain hunting pushed the bourse into positive territory by the close.

Overall trading remained subdued, with net value turnover at P5.21 billion, as investors stayed on the sidelines amid lingering uncertainty tied to the Middle East conflict and its impact on global markets. Foreign investors were net sellers, posting outflows of P992.33 million.

Sectoral performance was mixed. Mining & Oil led gains, up 1.85 percent, tracking elevated crude prices, while Property lagged, down 0.33 percent. Market breadth was positive, with 120 advancers against 76 decliners, signaling selective accumulation.

Among index stocks, DigiPlus Interactive Corp. emerged as the top gainer, rising 5.44 percent, while Century Pacific Food Inc. was the biggest laggard, falling 3.45 percent.

Meanwhile, the peso weakened to P60.33 per US dollar from P60.05, reflecting renewed pressure from global foreign exchange and oil markets. The US dollar strengthened as investors moved back into safe-haven assets amid escalating Middle East tensions, weighing on regional currencies.

Oil remains the key driver, with Brent crude trading above $110 per barrel and WTI near $113, as disruptions in the Strait of Hormuz — which carries about 20 percent of global supply — persist. Markets are reacting to a US ultimatum for Iran to reopen the strait, alongside threats of further strikes and continued attacks on energy infrastructure.

Higher oil prices are worsening the country’s import bill and inflation outlook, reinforcing demand for the US dollar. This dynamic, combined with the acceleration in March inflation driven by the Middle East conflict, continues to weigh on both the peso and the local bourse.