The Philippine Stock Exchange Index (PSEi) extended its losing streak, while the peso appreciated modestly from its record low as markets digested the latest geopolitical developments from the Middle East and the highest US Treasury yields in nearly two decades.
The PSEi slipped for a fifth straight session on Wednesday, edging down 0.06 percent to 5,893.40 as investors remained cautious amid rising US Treasury yields, elevated oil prices, and persistent peso weakness.
Surging long-term U.S. Treasury yields
Over the past 24 hours, global markets focused heavily on surging long-term US Treasury yields, with the US 30-year yield climbing above 5.1 percent — its highest level since 2007.
Higher yields strengthened the dollar globally and pressured emerging-market currencies, including the peso, which continues to trade near record-low levels due to the Philippines’ sensitivity to oil prices and heightened dollar demand stemming from the Middle East conflict.
Investors in the local bourse also interpreted the elevated yields as a sign that markets are pricing in prolonged inflation risks, which surged to a three-year high in April amid rising energy costs tied to the conflict.
Marginal improvement
Net value turnover stood at P5.65 billion, a marginal improvement from Tuesday’s P4.71 billion but still below the year-to-date average. Foreign investors remained net sellers, posting P115.32 million in net outflows.
Services led sectoral gainers, rising 0.33 percent, while Industrials posted the steepest decline at 0.79 percent. Ayala Land (ALI) advanced 1.76 percent to P15.00, while ACEN dropped 4.62 percent to P3.10.
Meanwhile, the peso closed marginally stronger at P61.74 per US dollar from Tuesday’s record-low P61.75 finish, although the currency remains near historic weakness levels. Intraday trading ranged from P61.67 to P61.75, while the Bankers Association of the Philippines weighted average settled at P61.725.
Slight peso stabilization
The slight stabilization came after oil prices eased modestly and markets reacted to softer rhetoric from Washington regarding Iran, although broader risk sentiment remained fragile.
Oil markets remained volatile after US President Donald Trump signaled that military action against Iran remained possible despite ongoing negotiations. Trump said he had paused a planned strike “an hour before” execution after Tehran submitted a new proposal, but later warned that the US could still “strike Iran again” if talks fail.
The remarks kept geopolitical risk premiums elevated even as Brent crude eased slightly to around $111 per barrel and West Texas Intermediate settled near $108 following recent spikes above $110.
Investors also remained wary of stagflation risks — slowing economic growth combined with elevated inflation — especially as peso weakness increases the cost of imports and external debt servicing.
