The local bourse finally ceased its five-day losing streak while the peso reversed course, strengthening against the greenback amid reported progress in peace talks between the United States and Iran.
On Thursday, the Philippine Stock Exchange Index (PSEi) rose 0.46 percent to 5,920.70 as investors tracked Wall Street’s overnight rebound and improving sentiment surrounding the US-Iran situation.
Wall Street rebounded overnight as US Treasury yields eased, lifting the S&P 500 and Nasdaq after recent oil-driven losses.
Softer US economic indicators also strengthened expectations that the Federal Reserve may pause further aggressive rate hikes, improving appetite for risk assets and emerging markets.
Investor sentiment improved further after US President Donald Trump said negotiations with Iran were already in the “final stages,” easing fears of an immediate escalation in the Middle East.
Reports also pointed to intensified backchannel diplomacy through Gulf states following earlier military threats.
The reduced geopolitical risk pushed Brent crude lower from near $110 per barrel, helping oil-importing economies like the Philippines.
This supported the peso’s rebound to P61.58 per US dollar from the previous P61.74 finish and fueled bargain hunting in the local equities market.
Market participation remained cautious, however, with net value turnover at just P5.05 billion while foreign investors still posted P190.76 million in net outflows.
Services led sectoral gainers, climbing 1.23 percent, while Industrials were the lone decliner, down 0.61 percent.
BPI emerged as the day’s top index performer, jumping 2.76 percent to P89.50, while Monde Nissin fell 3.66 percent to P6.84. Investors also rotated into selected blue-chip stocks, including ICTSI, SM and Jollibee, following recent market weakness.
Peso’s slight rebound
Meanwhile, the peso strengthened to P61.58 per US dollar from Wednesday’s P61.74 close, marking its strongest finish in several sessions.
The currency traded between P61.45 and P61.665 intraday, while the Bankers Association of the Philippines weighted average improved to P61.616 from P61.725 previously.
The rebound came as the US dollar weakened globally after Treasury yields pulled back and risk appetite improved across Asian markets.
Markets interpreted Trump’s remarks on Iran negotiations as reducing the immediate risk of disruptions in the Strait of Hormuz, a critical shipping route that handles roughly 20 percent of global oil flows.
Oil prices consequently eased from recent highs, with Brent crude retreating from the $110-per-barrel level while West Texas Intermediate also moved lower.
Global forex markets also saw a modest pullback in the US dollar as investors took profits following its recent safe-haven rally.
Regional currencies, including the Korean won, Thai baht and Philippine peso, stabilized as geopolitical fears temporarily eased.
