The Philippine stock market and the peso both advanced on Tuesday, buoyed by hopes of easing geopolitical tensions in the Middle East and cautious optimism ahead of a key U.S. monetary policy update.
The Philippine Stock Exchange index (PSEi) climbed 1.20% to close at 6,292.75, while the broader All Shares index gained 0.88% to 3,739.20.
All major sectoral indices ended higher, except for Mining and Oil, which slipped 2.04%. Leading the gainers were Financials, surging 2.60%, followed by Industrials (+1.41%), Services (+0.73%), Holding Firms (+0.61%), and Property (+0.22%).
According to Luis Limlingan, head of sales at Regina Capital Development Corp., news of a failed airstrike on a U.S. base in Qatar helped ease market jitters, sparking hopes of a potential de-escalation in the Iran-Israel conflict.
“Investors took the news as a sign that tensions may cool, at least for now,” Limlingan said.
Meanwhile, investors are also closely watching developments in the U.S., particularly Federal Reserve Chair Jerome Powell’s testimony before Congress. Powell is expected to face pressure to consider rate cuts, with some Fed officials hinting at a possible easing as early as July.
The positive sentiment spilled over to the currency market, with the peso strengthening sharply. The local currency closed at 57.16 against the U.S. dollar, up from Monday’s close of 57.58. It traded between 56.83 and 57.21 throughout the day, with a stronger mid-trade level breaching the 56-mark.
Daily forex trading volume jumped to $2 billion, significantly higher than Monday’s $1.28 billion, reflecting increased investor activity.
