The Philippine Stock Exchange Index (PSEi) rose 79.96 points, or 1.25 percent, to 6,404.11 on Friday, while the peso strengthened by 3.3 centavos to P61.587 per US dollar from Thursday’s P61.620 close, as bargain hunting and expectations of improving corporate earnings boosted sentiment.

Investors continued to position ahead of second-quarter earnings releases, maintaining optimism about the outlook for corporate performance.

Trading activity, however, while improved, remained below historical norms, with net value turnover reaching P5.91 billion, suggesting many investors remained cautious amid lingering global uncertainties.

Broadly positive sector performance

Sector performance was broadly positive, led by Property, which advanced 2.62 percent. Holding Firms, Financials, Industrials and Services also posted gains. Mining and Oil was the lone decliner, slipping 0.82 percent as commodity-related counters continued to weaken.

Among index constituents, Ayala Land Inc. emerged as the day’s top performer, surging 5.72 percent to P17.00, while Century Pacific Food Inc. was the biggest laggard, falling 1.25 percent to P31.60.

In the foreign exchange market, the peso traded within a relatively narrow range, opening at P61.59, reaching a high of P61.62 and a low of P61.555 before closing near its strongest level of the day.

The Bankers Association of the Philippines reported a weighted average rate of P61.587 and an FX settlement rate of P61.588. Total dollar turnover reached US$1.09 billion, slightly lower than the previous session’s US$1.29 billion.

Peso firms up

The peso’s appreciation was supported by a softer US dollar environment and improving risk appetite across emerging markets.

Expectations that the US Federal Reserve may move closer to easing monetary policy strengthened after recent US inflation and producer-price data pointed to moderating price pressures.