The Philippine Stock Exchange Index (PSEi) rose 1.12%, or 67.06 points, closing at 6,034.27 on Thursday, buoyed by optimism surrounding a possible agreement between the United States and Iran.
Despite weak domestic economic data, investor sentiment improved significantly, as reports suggested that the US and Iran were nearing a memorandum aimed at de-escalating ongoing tensions.
Philstocks Financial's research manager, Japhet Tantiangco, noted that the positive geopolitical outlook helped offset disappointing first-quarter gross domestic product (GDP) figures released earlier.
The improving geopolitical outlook overshadowed disappointing first-quarter gross domestic product data released earlier in the day.
Japhet Tantiangco, Philstocks Financial
Luis Limlingan, head of sales at Regina Capital Development Corp., added that strong early-session buying pressure reflected a heightened risk appetite among investors.
However, gains were moderated as investors grew cautious following the release of lower-than-expected GDP growth figures.
Trading activity remained robust, with net value turnover reaching P7.28 billion, while foreign investors recorded net inflows of P213.38 million.
All market sectors finished in the green, with banking stocks leading the charge as expectations of easing inflation and interest rates emerged.
Among the top performers, Century Pacific Food Inc. surged 7.83% to P31, while Converge ICT Solutions Inc. fell 1.61% to P12.20.
The local market's upward trend mirrored gains across regional markets as investors closely monitored developments in the Middle East.
Peso Strengthens Against the Dollar
The Philippine peso strengthened, closing at 60.42 per dollar after gaining 88.5 centavos, driven by the weakening of the US dollar.
The peso reached an intraday high of 60.345 as expectations for reduced tensions in the Middle East boosted oil-sensitive currencies.
Trading volume increased to $2.4 billion, up from $1.5 billion in the previous session, reflecting heightened market activity.
Analysts pointed out that the dollar remained under pressure following US President Donald Trump's comments regarding swift peace negotiations.