Market snaps two day losing streak; Peso back over P60

The benchmark Philippine Stock Exchange Index closed at 6,063.35 on Wednesday, up 0.84 percent and breaking a two day losing streak as Philippine equities rebounded alongside gains in U.S. markets. 

The rally was largely driven by renewed optimism that the United States and Iran may resume negotiations, following reports of a possible second round of talks, which helped improve global risk sentiment after recent volatility tied to the Middle East conflict. Investors also hunted for bargains following a two day slide to begin the week.

As such, trading activity was robust, with net value turnover reaching P7.26 billion, exceeding the year-to-date average of P6.48 billion. Despite the market’s advance, foreign investors remained net sellers, posting P1.37 billion in outflows, suggesting that the recovery was still largely supported by domestic participation.

All sectors finished higher, with banking stocks leading the gains (+1.23%), indicating improving confidence in the domestic economy. Market breadth was positive, with advancers outnumbering decliners, 112 to 73.

Among index constituents, Bank of the Philippine Islands (BPI) emerged as the top gainer, rising 3.13 percent to P102.30, while DigiPlus Interactive Corp. (PLUS) was the biggest laggard, falling 5.06 percentt to P15.00.

On the other hand, the Philippine peso weakened to P60.11 per US dollar from P59.87, marking a depreciation of about 24 centavos and a return to the P60 level, a psychologically important threshold.

Over the past week, the peso had strengthened toward the P59 range on optimism around a temporary easing in US–Iran tensions and expectations of lower oil prices. However, this strength proved fragile, with investor sentiment taking a hit following the US’ blockade of the Strait of Hormuz over the weekend. 

In the last 24 hours, the currency reversed as markets reassessed risks. Oil and geopolitical risks remain elevated. The ongoing conflict involving Iran and the US blockade of the Strait of Hormuz—through which roughly 20% of global oil supply passes—continues to drive volatility in energy markets.