The Philippine Stock Exchange index (PSEi) held steady on Tuesday, closing at 6,018.70, up a modest 0.04 percent, as investors awaited the upcoming monetary policy decision by the Bangko Sentral ng Pilipinas (BSP) this Thursday.

The BSP is expected to deliver an interest rate hike as inflationary pressures spill over into other goods and services beyond oil products — potentially dampening long-term economic growth while helping preserve purchasing power.

Bargain hunting continued to support the market following last week’s backslide. However, gains were pared during the session as investors remained cautious, weighing geopolitical risks and their implications for inflation and domestic monetary policy.

Turnover improved to P6.64 billion, but foreign funds remained on the sidelines, with net outflows of P311.95 million, highlighting lingering risk aversion.

Mixed sector performance

Sector performance was mixed. Conglomerates led the advance, supported by selective buying in index heavyweights, while services lagged as investors rotated into more defensive plays.

Market breadth was slightly positive, with advancers outpacing decliners, 106 to 90 — signaling a measured, stock-specific recovery rather than a broad rally. JG Summit Holdings emerged as the top gainer, rising 5.95 percent, while Ayala Land declined 2.12 percent as property stocks continued to face pressure from elevated interest rate expectations.

Peso strengthens slightly

On the currency front, the peso strengthened to P59.86 per US dollar, appreciating from the previous close of P59.97. The move reflects a pullback in the US dollar amid improving global risk sentiment and easing safe-haven demand, as markets monitored signs of de-escalation in Middle East tensions.

Over the past 24 hours, reports of continued diplomatic engagement between the US and Iran helped temper oil price spikes, supporting emerging-market currencies, including the peso.

At the same time, the dollar softened slightly as investors reassessed the pace of US monetary tightening following mixed economic signals, allowing regional currencies to recover modestly.