PSEi rallies back to 6,000 mark on US-Iran ceasefire

Local shares rallied on Wednesday, with the main index reclaiming the 6,000 level, as investors cheered the ceasefire in the Middle East.

The Philippine Stock Exchange Index (PSEi) advanced 2.22 percent or 132.04 points, to finish at 6,089.91.

Philstocks financial research manager Japhet Tantiahco said sentiment improved on reports of a two-week ceasefire between the United States and Iran, easing concerns over a broader conflict.

Tantiangco said the pause in planned attacks on Iranian infrastructure, reportedly with Pakistan’s mediation, helped temper fears of disruptions along the Strait of Hormuz.

“This development also strengthened the peso and improved investor confidence, further supporting gains in the market,” said Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp.

Ron Acoba, chief investment strategist at Trading Edge Consultancy, said at the same time, WTI crude fell by around 13 percent to $96, helping to ease global inflation expectations and boosting investor appetite for riskier assets.

“This temporary truce could offer the market a window for recovery, potentially allowing equities to rally after their decline since late February,” Acoba added.

Back home, trading picked up, with net value turnover reaching P7.25 billion, reflecting stronger investor participation.

However, foreign investors remained cautious, as net outflows totaled P437.45 million.

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More gainers than losers

All sectoral indices closed higher, with mining and oil counters leading the rally after gaining 6.86 percent.

Market breadth was positive, with advancing stocks outnumbering decliners, 158 to 47.

Among index components, Ayala Land Inc. posted the biggest gain, climbing 8.88 percent to P18.40, while ACEN Corp. ended as the session’s laggard, slipping 0.99 percent to P3.

Analysts said the market’s strong rebound showed how quickly sentiment could shift on easing geopolitical risks, although investors are still likely to remain cautious given lingering uncertainties overseas.