The Philippine Stock Exchange index (PSEi) closed higher for second straight trading day as the truce in the Middle East boosted investor confidence.
The peso also closed stronger at 56.711 to the US dollar from 57.16 on June 24.
The 30-company PSEi advanced 32.89 points or 0.52 percent to close at 6,325.64 while the broader all shares index climbed 15.23 points or 0.41 percent to 3,754.43.
“Philippine shares rose and oil price sank Tuesday as markets welcomed a fragile ceasefire between Israel and Iran, despite mutual accusations of violation,” Regina Capital Development Corp. head of sales Luis Limlingan said.
Global crude prices declined to near two-year low, erasing all of the increase in oil prices since the Israel-Iran attacks started last June 13.
Properties led the sectors, gaining 1.94 percent while mining and oil rose 1.49 percent.
Financials, however, ended in red declining by 0.24 percent and industrial by 0.02 percent.
Value turnover remained thin at P4.31 billion, lower than year-to-date average of P5.69 billion.
Foreign investors were net sellers with outflows reaching P331.50 million.
JG Summit Holdings Inc. emerged as top index gainer, rising by 5 percent to P18.90 per share while shares Emperador Inc. declined by 2.27 percent to P14.66 each.
Most Asian equities extended a global rally Wednesday after Iran and Israel agreed to a ceasefire that ended more than a week of hostilities, while the dollar held losses following a sharp drop stoked by bets on a US interest rate cut.
However, wariness over the agreement involving the Middle East foes helped oil prices climb, though they are still well down from their highs on Monday.
Investors around the world breathed a sigh of relief after Donald Trump announced the ceasefire days after US forces bombed Iran’s nuclear sites, which he said were “completely destroyed”.
The Israeli government said it had agreed to the US deal after achieving all of its objectives in the war with Iran, with Prime Minister Benjamin Netanyahu hailing a “historic victory” after 12 days of bombing.
Stocks surged on the news, and the optimism rolled into Wednesday, with Hong Kong, Shanghai, Tokyo, Sydney and Singapore leading the gains across Asia. There were small losses in Wellington, Bangkok and Jakarta.
London, Paris and Frankfurt were also on the front foot.
Oil prices, which tanked on news of the ceasefire, rose with both main contracts up nearly two percent.
However, they are still down around 15 percent from the highs hit Monday in the first reaction to the US bombing of Iran and before the ceasefire announcement.
The mood was also helped by Fed boss Jerome Powell choosing not to pour cold water on the prospects of a rate cut.
In closely watched testimony to Congress, he said that “if it turns out that inflation pressures do remain contained, then we will get to a place where we cut rates sooner rather than later”.
While he said “I don’t think we need to be in any rush because the economy is still strong”, the comments indicated a flexible tone.
They also came after Fed governors Christopher Waller and Michelle Bowman suggested officials could reduce borrowing costs next month.
The dollar tumbled against its peers and remained under pressure against the yen, pound and euro in Asian trade.
“The market staged a full-throttle risk-on revival, launching global equities into the stratosphere as oil prices cratered and rate-cut bets gained momentum,” said SPI Asset Management’s Stephen Innes.
“With the Middle East truce — however duct-taped and temperamental — holding long enough to calm headlines, traders pulled the ripcord on the fear trade and dove headfirst into equities.
“Trump’s… scolding of Israel and Iran added ice water to the fire — or at least enough jawbone to muzzle the Middle East combatants for now.” With AFP
