Manila: The local stock market and the Philippine peso experienced declines on Wednesday as investors adopted a cautious approach amid uncertainty surrounding the specifics of the U.S.-Iran peace agreement. The Philippine Stock Exchange index (PSEi) dropped by 2.10 percent to end at 6,114.81, while the broader All Shares index saw a reduction of 1.27 percent, closing at 3,381.50.

According to Philippines News Agency, among the sectoral indices, Financials was the only one to record gains, increasing by 1.37 percent. In contrast, Services suffered the most significant decline at 4.59 percent, followed by Holding Firms at 2.67 percent, Mining and Oil at 1.62 percent, Property at 1.22 percent, and Industrial at 0.34 percent. Trading volume reached 567.04 million shares valued at PHP8.25 billion. Decliners outnumbered advancers, 90 to 72, with 62 issues remaining unchanged.

Meanwhile, the peso weakened against the U.S. dollar, closing at 60.39 compared to the previous day's 60.32. The local currency opened stronger at 60.24 against the prior session's 60.40, trading within a range of 60.23 to 60.44 throughout the day, with an average rate of 60.32. Dollar volume amounted to USD1.65 billion, lower than the previous session's USD2.5 billion.

Rizal Commercial Banking Corporation chief economist Michael Ricafort noted that the market's performance was influenced in part by investors awaiting the full details of the U.S.-Iran peace agreement. He highlighted ongoing concerns, including challenges to fully reopen the Strait of Hormuz, such as the need to clear sea mines and normalize ship traffic to levels prior to the onset of the conflict involving Iran and the Middle East on February 28, 2026. Ricafort further commented that while the peace agreement is anticipated to aid in normalizing global energy supplies and prices, the process may not occur immediately.