The Philippine Stock Exchange Index (PSEi) rose significantly on Thursday, reaching 6,034.27 points. This marks a gain of 67.06 points, or 1.12 percent, as investor optimism grew following potential diplomatic progress between the United States and Iran.
Reports of easing geopolitical tensions in the Middle East contributed to the positive market sentiment. Investors appeared undeterred by the Philippines' recent economic slowdown, focusing instead on the possibilities of reduced regional risks.
Japhet Tantiangco, a market analyst, noted that the prospect of a US-Iran agreement outweighed concerns about the country's disappointing first-quarter GDP figures. This shift in focus helped boost investor confidence.
Luis Limlingan, another analyst, highlighted strong buying activity early in the session, which reflected a renewed appetite for riskier assets. However, as the day progressed, concerns about economic data prompted a more cautious approach among investors.
The total market turnover reached P7.28 billion, indicating robust participation. Notably, foreign investors returned as net buyers, contributing a net inflow of P213.38 million.
All sectoral indices ended positively, with banking stocks leading the way. Investors are positioning themselves for potential decreases in inflation and interest rates, primarily due to easing oil price concerns.
Individual stocks also saw significant movement, with Century Pacific Food Inc. rising 7.83 percent to close at P31 each.
Investor sentiment improved significantly with hopes of reduced geopolitical risks, despite the slower economic growth in the Philippines.
Japhet Tantiangco