Philippine shares rallied sharply on Monday, June 15, as investors welcomed news of a peace agreement between the United States and Iran — a development that lifted hopes of lower oil prices and easing inflation.
The benchmark Philippine Stock Exchange Index (PSEi) climbed 362.82 points, or 6.14 percent, to close at 6,272.88 — its highest finish in more than three months, since March 6. The index has now recovered strongly from the four-month low it hit on January 29.
The catalyst was the US–Iran peace deal, set to be signed on June 19, alongside the announced end of the blockade of the Strait of Hormuz. Together these eased geopolitical concerns and fueled expectations of falling global crude prices. Brent crude has already retreated toward $80 per barrel, while the peso strengthened past the 61-to-the-dollar mark.
Trading was robust, with net value turnover reaching P11.38 billion — well above recent averages. Foreign investors returned as net buyers, with net inflows of P1.03 billion. Every sector finished higher, led by banks, which surged 9.04 percent. Among the heavyweights, BDO Unibank posted the strongest gain, rising 14.36 percent to P133. Only four index members closed lower, with DMCI Holdings the biggest decliner at 2.33 percent.
It marked one of the strongest single-day performances for the local market this year, as improving global sentiment drew investors back into risk assets.
PSE Moves to Revive Its Underdeveloped ETF Market
Separately, the Philippine Stock Exchange (PSE) is preparing regulatory reforms to revive the country’s underdeveloped market for exchange-traded funds (ETFs). It will soon release proposed rule changes for public consultation.
Key proposals include:
- Broader pool of issuers — collective investment schemes such as umbrella funds and unit investment trust funds could list multiple sub-funds under a single ETF issuer.
- A wider range of products — fund units, not just company shares, would be eligible, and actively managed ETFs (not tied to tracking an index) could list as well.
- Sharply lower capital requirements — minimum capitalization would drop to P50 million from P250 million, and as low as P1 million for investment companies with at least a five-year track record.
- Simpler mechanics — issuers could appoint just one authorized participant to handle creation and redemption, and market makers would no longer be required to serve as authorized participants.
The PSE is also developing a Negotiated Trade Reporting Facility to improve liquidity, and is pursuing reforms in the securities borrowing and lending market.