Stocks recover on optimism over US-Iran deal

PHILIPPINE STOCKS rebounded on Wednesday on renewed optimism about peace in the Middle East, even as investors remained cautious over the economic impact of the war.

The Philippine Stock Exchange index (PSEi) rose by 1.17% or 69.13 points to close at 5,967.21, while the broader all shares index went up by 0.78% or 26.05 points to end at 3,363.45.

“The local market rose as the US paused its military efforts to assist commercial ships out of the Strait of Hormuz, citing progress towards a deal with Iran,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“The PSEi ended higher, tracking gains across global markets as a US-Iran ceasefire was held, easing concerns over escalating tensions in the Strait of Hormuz. Sentiment improved after Washington signaled the truce remains intact, helping temper fears of further disruption to global oil supply routes,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “Moreover, investors stayed on a wait-and-see stance ahead of the upcoming GDP (gross domestic product) release, amid lingering concerns over stagflation risks.”

Stocks leapt as oil prices dropped on Wednesday after US President Donald J. Trump touted the “great progress” that has been made towards a peace agreement with Tehran, Reuters reported.

Mr. Trump said he would briefly pause an operation dubbed Project Freedom escorting ships through the Strait of Hormuz, which carries about a fifth of the world’s oil and liquefied natural gas; it has been blockaded by Iran since late February, triggering a global energy crisis.

Brent crude, the global benchmark, fell 3.2% to $106.40 per barrel. That helped stocks to push higher after a rally on Tuesday.

Meanwhile, a BusinessWorld poll of 21 economists and analysts showed that Philippine GDP likely grew by 3.4% in the first quarter.

If realized, this would be slower than the revised 5.4% expansion recorded in the same quarter of 2025. This would also be below the government’s 5%-6% target for this year. However, it would be faster than the 3% growth in the fourth quarter of 2025.

Majority of sectoral indices closed higher on Wednesday. Mining and oil surged by 5.44% or 930.06 points to 18,012.99; services increased by 3.27% or 93.58 points to 2,949.29; industrials went up by 0.73% or 65.49 points to 8,922.47; holding firms climbed by 0.59% or 26.73 points to 4,510.36; and property rose by 0.49% or 9.53 points to 1,934.25.

Meanwhile, financials dropped by 0.83% or 14.90 points to 1,761.05.

Decliners outnumbered advancers, 103 to 93, while 56 names closed unchanged.

Value turnover went up to P7.64 billion on Wednesday with 1.35 billion shares traded from the P5.03 billion with 959.88 million issues that changed hands on Tuesday.

Net foreign buying increased to P129.86 million from P38.59 million. — Alexandria Grace C. Magno with Reuters