The Philippine Stock Exchange Index (PSEi) rebounded 38.85 points, or 0.64 percent, to 6,153.66 on Thursday while the peso depreciated to P60.56 from P60.39 previously, as easing geopolitical tensions lifted investor sentiment.

Optimism improved after reports that the United States and Iran had signed a memorandum of understanding aimed at advancing a broader peace agreement, including provisions to keep the Strait of Hormuz open for at least 60 days. The development eased concerns over potential disruptions to global oil supplies and helped stabilize risk appetite across regional markets.

However, gains were tempered by uncertainty surrounding the Bangko Sentral ng Pilipinas’ (BSP) policy decision, with several analysts expecting the central bank to raise interest rates in response to the ongoing energy-driven inflation pressures. The BSP ultimately delivered a rate hike, which was announced about 30 minutes before the market closed.

Trading activity moderated, with value turnover declining to P6.03 billion from P7.41 billion on Wednesday. Foreign investors returned as net buyers, posting net inflows of P167.55 million, reversing the previous session’s net outflows of P127.54 million.

Sector performance was mixed. Services led the advance, gaining 2.00 percent, while Mining & Oil was the biggest decliner, falling 2.87 percent as energy-related stocks retreated alongside softer oil price expectations.

Among index constituents, DigiPlus Interactive Corp. (PLUS) emerged as the top performer, surging 9.11 percent to P12.22, while Puregold Price Club Inc. (PGOLD) was the session’s biggest laggard, dropping 6.61 percent to P41.00.

Meanwhile, the peso weakened against the US dollar. Data from the Bankers Association of the Philippines (BAP) showed the local currency closing at P60.567 per dollar, compared with P60.393 on June 17. The move represented a depreciation of 17.4 centavos, or 0.29 percent.

The peso traded within a range of P60.41 to P60.65 during the session, while the BAP weighted average settled at P60.536, up from P60.328 a day earlier. The currency also opened weaker at P60.60, reflecting early demand for dollars.

The peso’s pullback came as investors repositioned ahead of the BSP’s policy announcement and monitored evolving expectations for US interest rates. A firmer US dollar environment, coupled with importer demand following the peso’s recent appreciation, also weighed on the local currency.