The Philippine Stock Exchange Index (PSEi) climbed back above the 6,000 level for the first time since 14 May on Monday, rising 0.80 percent to 6,009.38 as easing oil prices and improving global risk sentiment lifted equities and the local currency.
US President Donald Trump’s latest statements that talks with Iran were “progressing seriously,” with both sides “closer than people think” to a framework agreement, spurred investor optimism. Washington also reportedly conveyed through Omani mediators that it was open to allowing limited increases in Iranian oil exports during negotiations. Traders interpreted this as a sign that the US wanted to avoid another oil price shock while inflation remains elevated globally.
As those signals emerged, Brent crude fell sharply below US$100 per barrel after previously trading near US$110 earlier in the month. Lower oil prices immediately improved sentiment toward oil-importing economies like the Philippines because cheaper crude helps ease inflation risks, narrows trade deficits, and reduces pressure on currencies such as the peso.
Despite the market rebound, trading activity remained muted, with net value turnover at only P3.26 billion, the lowest so far this year, suggesting many investors remain apprehensive about further developments. Foreign investors remained net sellers with P238.39 million in outflows.
Banks led sectoral gains, advancing 1.21 percent, while industrials slipped 0.25 percent. Ayala Corp. (AC) gained 3.42 percent to P460.00, while DigiPlus (PLUS) dropped 5.48 percent to P12.08.
Meanwhile, the peso strengthened sharply to P61.465 per US dollar from Friday’s P61.69 close, appreciating by 22.5 centavos. The rally was driven by broad dollar weakness in global forex markets as investors reduced safe-haven positions following the apparent easing of Middle East tensions. The dollar index softened while Asian currencies, including the Korean won, Thai baht, and Philippine peso, recovered modestly.
Another key driver was the decline in US Treasury yields after softer US manufacturing and consumer demand indicators increased expectations that the Federal Reserve could begin cutting interest rates later in the year.
Geopolitically, forex markets reacted positively after Trump said negotiations with Iran were “moving in the right direction” and nearing a possible framework agreement. Traders interpreted the comments as reducing the immediate risk of supply disruptions in the Gulf region.
