Daily TribuneMarket sentiment improved after various reports, including from prominent Saudi-owned Al Arabiya, a leading news network in the Middle East, of diplomatic US and Iran communications eased concerns over an immediate escalation in tensions, reducing demand for traditional safe-haven assets such as the US dollar.
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The Philippine Stock Exchange Index (PSEi) rose 62.83 points, or 1.01 percent, to 6,286.70 on Friday, while the peso strengthened by 9 centavos to P61.515 per US dollar from Thursday’s P61.605 close, as improving risk sentiment lifted local financial markets.
Recovered most of previous session’s losses
The benchmark index recovered most of the previous session’s losses as investors resumed bargain hunting and took positive cues from Wall Street’s overnight advance.
Trading activity improved significantly, with net value turnover reaching P6.79 billion, while foreign investors remained supportive of local equities, posting net inflows of P772.08 million.
The rally was broad-based, with all sectoral indices ending in positive territory, led by Mining and Oil, which gained 2.32 percent on stronger commodity sentiment and improved risk appetite.
Property on the lead
Market leadership came from the property sector, with Ayala Land Inc. (ALI) surging 5.96 percent to P16.00, making it the day’s top contributor to the index.
Conglomerates and property stocks likewise rebounded strongly as investors selectively accumulated beaten-down blue chips following recent weakness.
The positive tone extended across the broader market, with buying interest expanding beyond a handful of large-cap names.
The lone notable drag among index constituents was DigiPlus Interactive Corp. (PLUS), which declined 4.05 percent to P11.36 amid profit-taking following recent gains.
According to data from the Bankers Association of the Philippines, the peso traded between P61.48 and P61.60 during the session, while the weighted average settled at P61.522.
Peso benefits from global US dollar retreat
The local currency benefited from a modest retreat in global dollar demand as investors grew more optimistic about geopolitical developments in the Middle East.
Market sentiment improved after reports of diplomatic communications between the United States and Iran eased concerns over an immediate escalation in tensions, reducing demand for traditional safe-haven assets such as the US dollar.
Improved risk appetite also supported emerging-market currencies and equities, including the peso and Philippine stocks.
