Stocks close week above 6000; peso below P60

For the first time since mid-March, the local bourse ended the trading week above the 6,000 level, while the peso closed just below P60, as investors traded with cautious optimism amid the ongoing Middle East ceasefire.

The Philippine Stock Exchange index (PSEi) closed Friday at 6,098.21, up 0.14 percent, finishing the week above 6,000 for the first time since March 19. Investors digested recent developments in the Middle East, as well as the Bangko Sentral ng Pilipinas’ (BSP) latest data on foreign direct investments (FDIs) for January, which pointed to persistent foreign investor caution.

While the two-week ceasefire announced last Wednesday continues to support sentiment, trading remained subdued, with value turnover at P6.48 billion, reflecting investor caution ahead of US–Iran negotiations in Islamabad. Despite Friday’s gains, market breadth was narrow, with decliners slightly outnumbering advancers (102 to 100), signaling lingering caution.

Sectoral performance was mixed, with Services leading gains (+1.97%), while Property lagged (-1.41%). Metrobank topped index gainers (+4.50%), while Century Pacific was the biggest decliner (-3.30%).

On the currency front, the peso weakened to P59.97 per US dollar from P59.43 previously, as the US dollar regained some ground and oil prices rebounded. Over the past 24 hours, Brent crude climbed back to around $97 to $100 per barrel amid renewed attacks on energy facilities and doubts over the durability of the ceasefire.

While the earlier ceasefire triggered a sharp drop in oil prices and a rally in Asian currencies, markets have since turned more cautious. The Strait of Hormuz remains constrained, with limited oil flows and continued geopolitical flare-ups, including strikes in Lebanon and threats to shipping routes.

The announcement of a potential summit between the US and Iran in Islamabad also supported the US dollar, while Asian currencies trimmed gains as investors balanced easing geopolitical risks against persistent energy supply concerns and upcoming US inflation data.