PH index bounces back on easing US-Iran tensions
MANILA, Philippines — Philippine equities bounced back on Wednesday, with the benchmark index rising as investors responded positively to easing geopolitical tensions in the Middle East. The improved outlook boosted demand for riskier assets and supported continued foreign inflows into the local market.
The Philippine Stock Exchange index (PSEi) advanced by 1.17 percent, or 69.13 points, finishing the session at 5,967.21.
Market sentiment tracked gains seen in global equities after signs that the ceasefire between the United States and Iran remained intact. This development helped calm fears of further conflict in the Strait of Hormuz, a critical route for global oil shipments.
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According to Luis Limlingan, head of sales at Regina Capital Development Corp., investor confidence strengthened after Washington indicated that the truce would hold. This reassurance reduced concerns about potential disruptions to oil supply chains.
He added that market participants are also staying cautious ahead of the upcoming release of economic growth data, as uncertainties tied to possible stagflation continue to linger.
Japhet Tantiangco, research manager at Philstocks Financial, noted that sentiment was further lifted after the United States temporarily halted military operations aimed at assisting commercial vessels in the Strait of Hormuz. The move was seen as a sign of progress toward a possible agreement with Iran.
Foreign investors remained active, registering net inflows of P129.86 million. This marked the third consecutive trading day of net foreign buying, providing additional support to the market.
Total net value turnover reached P6.42 billion during the session.
Mixed sector performance
Most sectors ended the day in positive territory, with the exception of banks, which declined by 0.84 percent. Meanwhile, mining and oil stocks led the gains, climbing 5.44 percent.
Among individual companies, ACEN Corp. posted the strongest performance among index members, rising 7 percent to close at P3.21.
On the other hand, DigiPlus Interactive Corp. recorded the steepest decline, dropping 6.35 percent to P13.86.
Analysts said the market’s rebound reflects improving sentiment after recent volatility driven by geopolitical uncertainties tied to the Strait of Hormuz. Investors are expected to continue monitoring global developments, particularly those that could influence inflation, energy prices, and interest rate expectations.
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