PSEi, peso rebound as Trump hints at possible end of Middle East conflict

Philippine financial markets rebounded on Tuesday, as global crude oil prices corrected after US President Donald Trump hinted at the possible end to the conflict in the Middle East.

The local stock barometer PSEi also gained 120.44 points or 2.01% to 6,126.66 at the closing bell, while the broader All Shares index grew by 60.86 points or 1.82% to 3,407.61.

More than 1.396 billion shares, valued at P7.492 billion, changed hands. Advancers led decliners, 147 to 58, while 64 issues were unchanged.

“The PSEi rebounded sharply after yesterday’s sell-off, tracking gains in global equities as optimism over potential geopolitical deescalation improved risk sentiment following President (Donald) Trump’s remarks suggesting the conflict may end soon,” Regina Capital Development Corp. head of sales Luis Limlingan said in a mobile message.

Trump, in a conversation with CBS News, said the “war is very complete, pretty much” and that he was looking into taking control of the Strait of Hormuz, bringing global oil prices down.

Meanwhile, the peso gained 60.4 centavos to close at P58.896:$1 from Monday’s finish of P59.5:$1, the weakest performance of the peso on record.

This comes after Malaca?ang expressed support for intervention of the Bangko Sentral ng Pilipinas (BSP) in the foreign exchange market should the local currency continue to depreciate.

This comes as Palace Press Officer Undersecretary Claire Castro was reported to have said that the administration will agree with interventions to be made by the BSP should the depreciation continue.

“The US dollar/peso exchange rate corrected lower after Malaca?ang signaled theat President (Ferdinand “Bongbong”) Marcos (Jr.) will favor BSP intervention to support the peso if the peso further weakens vs. the US dollar due to conflict in the Middle East,” Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said in a mobile message.

Just last week Bangko Sentral ng Pilipinas (BSP) governor Eli Remolona Jr. signaled a possible rate hike should global crude oil prices breach $100 per barrel, in a bid to tame inflation.

Malaca?ang in January said Marcos wants to avoid the peso weakening to P60:$1 as this could raise the country’s debt. — BAP, GMA Integrated News