The Philippine Stock Exchange index (PSEi) surged by 1.17 percent on Wednesday, closing at 5,967.21 points. This increase is attributed to a renewed sense of investor confidence following the easing of geopolitical tensions in the Middle East.
The positive market response comes after reports confirmed that the ceasefire between the United States and Iran remains intact, alleviating fears of escalating conflict in the Strait of Hormuz, a vital shipping route for global oil.
Luis Limlingan, head of sales at Regina Capital Development Corp., noted that the truce has reassured investors, helping to ease concerns over potential disruptions to oil supplies.
Despite the optimistic outlook, market players are exercising caution ahead of the upcoming economic growth data release, as uncertainties about stagflation persist.
Analyst Japhet Tantiangco from Philstocks Financial remarked that the US's temporary halt in military operations in the Strait of Hormuz further boosted investor sentiment.
Foreign capital continued to flow into the local market, with net inflows reaching P129.86 million, marking the third day of net foreign buying. Total net value turnover for the session was P6.42 billion.
Sector Performance Overview
Most sectors performed well, except for banks, which saw a decline of 0.84 percent. The mining and oil sector stood out, gaining 5.44 percent.
ACEN Corp. led the index with a notable 7 percent increase, closing at P3.21, while DigiPlus Interactive Corp. faced the largest drop, falling 6.35 percent to P13.86.
Market analysts predict that the rebound will continue as investors remain vigilant about global developments that could affect inflation and energy prices.