Ceasefire talks spur bourse, peso

The local bourse and the peso both posted strong gains on Wednesday following the announcement of a two-week ceasefire in the Middle East.

The benchmark Philippine Stock Exchange Index (PSEi) surged 2.22 percent, closing above the 6,000 level for the first time since 25 March at 6,089.91, as investor sentiment improved sharply after the US–Iran ceasefire.

Fears of prolonged supply disruptions ease

The agreement — brokered with Pakistan — includes the reopening of the Strait of Hormuz, easing fears of prolonged supply disruptions. Global oil prices fell below $100 per barrel following the announcement, further fueling investor optimism.

Domestic pump prices — which remain in the triple-digit-per-liter range — are also expected to ease slightly, a development welcomed by investors.

Robust trading

Amid the improved sentiment, trading activity was robust, with value turnover reaching P7.25 billion, although foreign investors remained net sellers, posting P437.45 million in outflows.

All sectors finished in positive territory, led by Mining & Oil (+6.86 percent), while market breadth was strongly positive at 158 advancers versus 47 decliners. Ayala Land led blue-chip gainers (+8.88 percent), while ACEN was the lone decliner (-0.99 percent).

Meanwhile, the local currency also appreciated sharply to P59.43 per US dollar from P60.33 the previous day, marking a strong rebound. The move reflects a broad risk-on shift in global markets after oil prices dropped 13 to 15 percent to below $100 per barrel following the ceasefire and reopening of the Strait of Hormuz.

Peso rally driven by weak US dollar

Over the past 24 hours, the peso’s rally was driven by a weaker US dollar and easing safe-haven demand, reversing earlier gains when geopolitical tensions pushed oil prices above $110 and strengthened the greenback.

The sharp decline in oil prices is particularly supportive for the Philippines — an oil-importing economy — as it helps ease pressure on inflation and the trade balance. More broadly, emerging market assets, including Asian currencies, rallied as the ceasefire improved global risk appetite.