PSEi retakes 6000 as tensions ease

The Philippine Stock Exchange Index (PSEi) climbed back above the 6,000 level for the first time since 21 April, while the peso appreciated toward the P60 threshold as markets welcomed progress in peace talks between the US and Iran.

The PSEi extended its recovery on Thursday, rising 1.12 percent to 6,034.27, as optimism strengthened following reports that the United States and Iran were moving closer to a diplomatic framework aimed at de-escalating tensions in the Middle East — particularly around the Strait of Hormuz, whose disruption has fueled global oil price volatility.

Significantly improved trading

Trading activity improved significantly, with net value turnover reaching P7.28 billion, above recent averages, while foreign investors remained net buyers with inflows of P213.38 million, marking another session of sustained foreign participation.

The rally came despite disappointing first-quarter Philippine GDP data, as investors focused on improving external conditions and easing pressure on energy markets.

All sectors finishing 

in positive territory

Optimism prevailed, with all major sectors finishing in positive territory, led by banks as investors rotated back into large-cap financial names. Consumer and industrial stocks also advanced amid expectations that lower oil prices and a stabilizing peso could help temper inflation risks in the coming months.

Among index movers, Century Pacific Food Inc. (PSE: CNPF) emerged as the top gainer, surging 7.83 percent to P31.00, as bargain hunters accumulated defensive consumer names following recent volatility. Meanwhile, Converge ICT Solutions Inc. (PSE: CNVRG) was the session’s weakest index constituent, declining 1.61 percent to P12.20 amid profit-taking after earlier gains.

Peso strengthens sharply

Meanwhile, the Philippine peso strengthened sharply to P60.42 per US dollar, improving from Wednesday’s close of P61.30. The move reflected broad weakness in the US dollar across Asian foreign exchange markets as investors unwound safe-haven positions following signs of easing US-Iran tensions.

Reports that both sides were discussing terms for a possible memorandum of understanding helped calm fears of prolonged disruptions in the Strait of Hormuz, prompting global crude oil prices to retreat from recent highs. 

Benefiting from lower

energy prices

As a major oil importer, the Philippines benefits from lower energy prices, which help ease pressure on the country’s import bill and inflation outlook.

The peso also drew support from softer US Treasury yields and growing expectations that the Federal Reserve may eventually adopt a less aggressive policy stance if geopolitical risks continue to ease. Regional currencies broadly stabilized alongside improving investor appetite for emerging market assets.