BUSINESS

PSEi rebounds 1.05% after inflation-driven selloff

The local bourse perked up, rising 59.57 points to 5,736.69 even as the peso firmed up, P62.750 vis-a-vis the US dollar, from the previous P62.771 close.

Toby Magsaysay · Oct 8, 2026, 2:48 AM

The PSEi recovered from the previous session’s drop, to reclaim the 5,700 level while the peso settled at P62.75 to the dollar. Sentiment was supported by bargain-hunting among investors, positive performance cues from Wall Street, and local employment data showing a decline in the unemployment rate. — DAILY TRIBUNE images

The Philippine Stock Exchange Index (PSEi) rose 59.57 points, or 1.05 percent, to 5,736.69 on Wednesday, while the peso strengthened 2.1 centavos, or 0.03 percent, to P62.750 per US dollar from Tuesday’s P62.771 close, as bargain hunting and firmer Wall Street cues lifted local equities following the previous session’s selloff.

The local market rebounded as investors hunted for bargains after the PSEi fell 1.15 percent on Tuesday following the release of September inflation data showing a sharp acceleration to 7.2 percent from 6.1 percent in August.

Sentiment also drew support from Wall Street, where the S&P 500 and Nasdaq reached record highs on Tuesday amid renewed optimism over corporate earnings and artificial-intelligence investments.

Broad-based rebound

The rebound was broad-based, with five of the six sectors advancing. Mining and Oil led the gains, rising 1.63 percent, followed by Holding Firms at 1.44 percent, Financials and Property at 1.31 percent each, and Services at 0.54 percent. Industrials was the lone decliner, slipping 0.32 percent. PSE data confirmed the sector moves.

Turnover remained light at P4.42 billion, although foreign investors turned net buyers with P175.56 million in inflows.

SM Investments Corp. was the day’s top index gainer, climbing 3.28 percent to P516.00. Semirara Mining and Power Corp. was the biggest laggard, falling 3.20 percent to P12.70.

Modest recovery for the peso

The peso posted a modest recovery after reaching a record-low close of P62.771 on Tuesday. It opened at P62.65 and traded between P62.65 and P62.84 before settling at P62.750.

The BAP AM weighted average was P62.778, while the PM weighted average eased to P62.752, indicating some strengthening in afternoon trading.

The full-day BAP weighted average stood at P62.766, while the FX settlement rate was P62.778.

Total spot-market volume declined to $1.208 billion from $1.496 billion on Tuesday, with AM volume at $651 million and PM volume at $557 million.

The peso’s move came as global markets continued to weigh elevated US yields, oil prices and inflation risks. US Treasury yields also eased from multi-decade highs, with the 10-year yield falling to about 5.27 percent from 5.31 percent, providing some relief to equity markets.