Philippine shares advanced on Wednesday as investors welcomed the Israel-Iran ceasefire and a sharp drop in oil prices, boosting sentiment across regional markets.
The benchmark PSEi rose 0.52 percent or 32.89 points to close at 6,325.64, while the broader All Shares added 15.23 points or 0.41 percent to 3,754.43.
Market breadth was slightly positive, with 97 gainers, 83 losers, and 60 unchanged. Total value turnover reached P4.67 billion from 616.14 million shares across 69,114 trades.
Foreign investors, however, remained cautious, registering net outflows of P331.5 million, as total foreign buying stood at P1.95 billion, against P2.28 billion in foreign selling.
“Investors cheered the effect of the ceasefire on other relevant markets, including the decline in global oil prices and the rebound of the Philippine peso against the US dollar,” Japhet Tantiangco, research manager at Philstocks Financial Inc., said “The local market extended its rise on the back of hopes that the Israel-Iran ceasefire would hold.”
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., pointed out global crude prices fell to two-week lows, effectively erasing all gains made since hostilities began on June 13, 2025.
“The benchmark Nymex crude is back at $65 per barrel, near levels last seen before the attacks started,” Ricafort said, suggesting easing inflation pressures in the near term.
However, crude futures bounced slightly mid-Wednesday as investors assessed the fragility of the truce and the lessened risk of disruptions at the Strait of Hormuz, a key oil chokepoint. Reuters reported both sides have accused each other of early ceasefire violations, casting doubts on the truce’s durability.
US President Donald Trump took credit for brokering the ceasefire and publicly criticized both Israel and Iran for fanning tensions, with particularly pointed remarks toward Israel. “Calm down now,” he said, noting that Israel backed down from further strikes at his urging.
Meanwhile, Luis Limlingan, managing director at Regina Capital and Development Corp., said investors also digested US Federal Reserve Chair Jerome Powell’s latest testimony, where he signaled no urgency in cutting interest rates, preferring to assess the economic impact of Trump’s latest tariffs.
“The Fed’s wait-and-see stance has kept global markets slightly cautious, but easing oil prices are giving emerging markets some breathing room,” Limlingan said. (With a report from Reuters)
