PSE Index Surges on Prospects for Middle East Peace

The Philippine Stock Exchange (PSE) index surged on Thursday amid optimism over possible peace negotiations in the Middle East, closing at 6,034.27, up 67.06 points or 1.12%.

The Philippine Stock Exchange (PSE) Index, May 7, 2026

Investor sentiment improved following reports of peace overtures between Iran and the United States, which helped push oil prices below $100 per barrel. Lower oil prices typically ease inflation concerns and support broader market confidence.

All sectors posted gains, led by financials, which climbed 2.37% as investors accumulated beaten-down banking shares seen as offering recovery potential.

Bank of the Philippine Islands rose 4.74% to ₱117.10, while Metropolitan Bank & Trust Company advanced 3.20% to ₱66.10.

Other notable gainers included Megawide Construction Corporation, Century Pacific Food Inc., and Jollibee Foods Corporation as investors bet on sectors expected to benefit from easing geopolitical tensions.

Market bellwether SM Investments Corporation posted only modest gains as investors remained cautious amid lingering uncertainty surrounding the geopolitical situation.

Value turnover reached ₱7.91 billion, about 30% above average levels, while market breadth remained positive, with 125 gainers, 83 losers, and 53 unchanged issues.

Foreign investors were net buyers, with purchases totaling ₱4.588 billion against foreign selling of ₱4.375 billion, resulting in net foreign buying of ₱213 million. Analysts said investors will continue monitoring developments in ongoing peace discussions, particularly negotiations involving Iran’s nuclear program.