PSEi climbs to 3.5-month high on easing Mideast tensions

The Philippine Stock Exchange index (PSEi) extended its winning streak for a second straight session, rising by 32.89 points or 0.52 percent to close at 6,325.64 on Tuesday, its highest finish in nearly three and a half months.

Investor sentiment was boosted by a tentative ceasefire announcement between Iran and Israel, which eased Middle East tensions and led to a sharp drop in global oil prices to new two-week lows.

The benchmark NYMEX crude settled at around $65 per barrel, erasing all gains since the conflict erupted on June 13.

A decline in global crude oil prices is seen as positive for the Philippines, potentially leading to lower fuel pump prices and reduced inflationary pressures.

The Philippine peso also strengthened against the U.S. dollar, closing at 56.70 from the previous day's 57.16, a one-week low.

Dovish remarks from U.S. Federal Reserve officials have also contributed to investor optimism, with market expectations leaning towards more interest rate cuts in 2025 than previously projected.