Roller coaster ride for peso, PSE index

Last Thursday, local  equities also posted gains, as the Philippine Stock Exchange index (PSEi) grew by 41.70 points or 0.70% to 5,958.64 while the broader All Shares index climbed 17.85 points or 0.54% to 3,318.11.

A local economist said the index  closed higher as bargain hunting prevailed following the steep sell-down in the previous session. Investors took advantage of lower valuations after the recent decline.

Also, the Philippine peso appreciated against its US counterpart for the third straight trading day on Thursday as global crude oil prices eased, and inflation concerns softened following the Federal Reserve’s first rate hike in three years.

The local currency gained 0.9 centavos to close Thursday at P62.73:$1 from Wednesday’s finish of P62.739:$1. The peso hit a fresh record low finish of P62.86:$1 on Monday, September 14, 2026.

 But all these gains were immediately gone the next day, in a matter of hours.

The media reported that the PSEi sank below 5,900 because of rising bond yields and high oil prices, on Sept. 18.

Stocks took a beating below the 5,900 level on Friday as rising treasury yields, elevated oil prices and a weak peso dampened investor appetite.

The benchmark Philippine Stock Exchange Index (PSEi) fell 1.72 percent, or 102.73 points, to close at 5,855.91.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said this marked the PSEi’s lowest level in more than three and a half months, or since July 1.

Moreover, Philstocks Financial Inc. research manager Japhet Tantiangco said local treasury yields climbed as investors weighed the outlook for interest rates and inflation.

Additionally, short-term yields rose after the US Federal Reserve’s latest policy rate increase fueled expectations that the Bangko Sentral ng Pilipinas could follow suit.

Long-term yields, meanwhile, increased amid rising inflation expectations. The rise in treasury yields makes stocks less attractive.