The Philippine Stock Exchange Index (PSEi) climbed 33.89 points, or 0.54 percent, to 6,314.90 on Monday, while the peso strengthened by 17.2 centavos to P61.675 against the US dollar from Friday’s record-low close of P61.847, as easing geopolitical tensions in the Middle East improved investor sentiment.

The local bourse rebounded as reports of a pause in hostilities between the United States and Iran over the weekend pushed global oil prices lower, encouraging bargain hunting in oversold Philippine equities after last week’s decline.

Trading activity, however, remained subdued, with net value turnover reaching only P4.07 billion. Foreign investors remained net sellers, recording net outflows of P196.45 million, indicating continued caution despite selective buying by domestic investors.

Mixed sector performance

Sector performance was mixed. Mining and Oil led gains, advancing 1.11 percent, while Holding Firms was the only major sector to end in negative territory, slipping 0.10 percent. Monde Nissin Corp. (MONDE) was the day’s top-performing index constituent, surging 5.51 percent, while DigiPlus Interactive Corp. (PLUS) declined 1.87 percent on continued profit-taking.

Although Monday’s advance lifted the benchmark back above the 6,300 level, market participation remained thin and foreign fund flows stayed negative, suggesting investors continue to adopt a cautious stance amid lingering global uncertainties.

According to the Bankers Association of the Philippines, the peso opened at P61.76 and traded between P61.67 and P61.76 before closing near its strongest level of the session. The weighted average exchange rate improved to P61.713 from P61.841 previously, while the FX settlement rate eased to P61.716 from P61.832.

Peso recovery

The peso’s recovery was driven by improved global risk sentiment after reports that the United States and Iran paused direct military attacks over the weekend, easing fears of a wider conflict in the Middle East.

The resulting decline in global crude oil prices reduced concerns over higher import costs and imported inflation, while weaker safe-haven demand for the US dollar also supported the local currency.