The Philippine Stock Exchange index (PSEi) extended its gains on Thursday, rising 56.46 points, or 0.93 percent, to 6,125.72 while the peso strengthened slightly to P61.56 per US dollar from P61.62 previously.

Investors welcomed the World Bank’s upgrade of the Philippines to upper-middle-income economy status. Sentiment was also supported by the S&P Global Philippines Manufacturing PMI, which edged up to 50.9 in June from 50.8 in May, signaling continued expansion in factory activity.

Trading remained relatively subdued, however, with value turnover reaching P5.37 billion. Foreign investors were net sellers, posting outflows of P199.83 million.0

Positive market breadth

Market breadth was broadly positive. Mining and oil led sectoral gains, rising 2.45 percent, while industrials were the lone decliner, slipping 0.11 percent.

Among index members, Jollibee Foods Corp. (JFC) was the top gainer, climbing 6.29 percent to P148.80, while Aboitiz Equity Ventures Inc. (AEV) fell 2.39 percent to P32.70.

Meanwhile, the peso strengthened slightly to P61.56 per US dollar from P61.62 previously, gaining about 5.6 centavos. The currency traded between P61.53 and P61.65 during the session, while the Bankers Association of the Philippines’ weighted average rate settled at P61.59.

Peso supported by easing demand for U.S. dollar

The peso drew support from easing demand for the US dollar, a more stable global risk environment, and the World Bank’s upgrade, which reinforced confidence in the country’s economic fundamentals.

Continued diplomatic engagement between the United States and Iran also helped keep oil prices in check, easing inflation concerns for oil-importing economies such as the Philippines.

Despite Thursday’s gains, investors remained cautious as elevated US interest rates, lingering concerns over the country’s growth outlook, and persistent foreign fund outflows continued to temper market sentiment.