PSEi jumps over 6% as US, Iran agree to end war

THE MAIN INDEX surged by over 6% to march back above the 6,200 line on Monday after the United States and Iran said they are set to sign a peace deal this week to end a near four-month war.

The Philippine Stock Exchange index (PSEi) jumped by 6.13% or 362.82 points to close at 6,272.88, while the broader all shares index went up by 4.38% or 144.40 points to end at 3,434.35.

This was the PSEi’s highest finish since it closed at 6,320.41 on March 6. This was also its best single-day performance in over six years or since March 26, 2020, when it gained by 7.44% or 373.82 points to 5,401.28.

“The local bourse ended significantly higher after the US and Iran reached an agreement and announced the end of the Strait of Hormuz blockade, easing geopolitical concerns. The development triggered strong buying pressure, making the local index one of the top gainers in the region. Meanwhile, improved risk sentiment also supported the peso, leading to appreciation against the greenback,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The local market jumped as investors cheered the US and Iran’s peace deal to be signed on June 19. The peace deal is seen to bring oil prices lower, which in turn bodes well for our country’s inflation outlook. Brent crude has already pulled near the $80 per barrel mark following the announcement of the deal. The peso has also reacted positively, going below the P61-per-dollar level,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

The memorandum of understanding between the US and Iran is scheduled to be officially signed on Friday in Switzerland, Reuters reported. Oil prices fell on the news. Brent crude futures fell 4% in early trading on Monday while stock markets in Asia jumped.

The peso appreciated by 87 centavos to finish at P60.48 per dollar, returning the P60 level for the first time since early May and posting its strongest close since May 7’s P60.42.

All sectoral indices closed in the green on Monday. Financials advanced by 9.03% or 160.76 points to 1,940.04; mining and oil increased by 7.41% or 1,161.58 points to 16,828.81; holding firms went up by 5.97% or 252.50 points to 4,476.16; services climbed by 4.97% or 158.55 points to 3,345.64; property rose by 4.78% or 85.28 points to 1,866.98; and industrials rallied by 2.56% or 212 points to 8,482.77.

Advancers overwhelmed decliners, 144 to 58, while 43 names were unchanged.

“BDO Unibank, Inc. led the index members, jumping 14.36% to P133. There were only four index losers for the day with DMCI Holdings, Inc. shedding the most, down 2.33% to P8.38,” Mr. Tantiangco said.

Value turnover rose to P12.76 billion on Monday with 679.84 million shares traded from the P6.65 billion with 585.43 million issues that changed hands on Thursday.

Net foreign buying ballooned to P1.03 billion from P553.61 million in the previous session. — Alexandria Grace C. Magno