THE peso and the stock market rallied on Thursday as sentiment improved following news of a ceasefire between the US and Iran.
The currency strengthened by 90 centavos to P59.43 per dollar, its strongest close since March 12’s P59.385, while the benchmark Philippine Stock Market index (PSEi) added 132.04 points, or 2.22 percent, and ended the day at 6,089.91.
The broader All Shares also rose, by 65 points or 1.94 percent, to 3,415.16.
The peso opened at P59.661 and traded between P59.291 and P59.7 during the session. Volume ballooned to P2.479 billion from P1.680 billion the day earlier.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso strengthened after US President Trump agreed to a two-week ceasefire, subject to Iran’s reopening the Strait of Hormuz.
Japhet Tantiangco, research manager at Philstocks Financial Inc., said the ceasefire was also behind the PSEi’s surge.
The suspension of attacks on Iranian infrastructure led to a sharp drop in global oil prices and a stronger peso, both of which supported the market’s climb.
Regina Capital Development Corp. sales head Luis Limlingan also said that the stock market’s strong performance was driven by a shift in global sentiment and the peso’s appreciation.
Ron Acoba, chief investment strategist at Trading Edge Consultancy, said the PSEi tracked gains across regional markets.
He added that falling oil prices, with WTI crude dropping by around 13 percent to $96 per barrel, helped ease global inflation expectations and encouraged investors to return to riskier assets.
Trading was strong, with total turnover reaching about P7.25 billion. Advancers overwhelmingly outpaced decliners, 158 to 47, while 57 issues were unchanged.
All sectoral indices closed in positive territory, led by mining and oil that surged 6.86 percent.