Manila: The Philippine Stock Exchange index (PSEi) showed resilience on Thursday, recording gains despite ongoing volatility stemming from the Middle East situation. However, the peso continued its downward trajectory against the US dollar for the sixth consecutive trading session.

According to Philippines News Agency, the benchmark Philippine Stock Exchange index climbed by 1.15 percent, reaching 6,380.53 points. The broader PSE All Shares Index also saw an increase of 1.16 percent, closing at 3,525.99. All sectoral indices registered advancements, with Mining and Oil leading the way with a 1.92 percent rise. This was followed by Services at 1.87 percent, Industrial at 1.32 percent, Financials at 0.91 percent, Property at 0.71 percent, and Holding Firms at 0.43 percent.

The trading volume on the stock exchange amounted to 1.91 billion shares, with a total value of PHP6.3 billion. Advancers surpassed decliners, 125 to 72, while 59 shares remained unchanged.

In contrast, the peso experienced further weakening, ending the day at 58.63 against the US dollar, down from 58.57 on Wednesday. Although the peso opened stronger at 58.40 and briefly strengthened to 58.33 during the trading session, it eventually slipped back to 58.63. The average exchange rate for the day stood at 58.46. The foreign exchange volume was USD1.57 billion, a decrease from the previous session's USD1.77 billion.

Michael Ricafort, chief economist at Rizal Commercial Banking Corporation, attributed Thursday's forex activity partly to the acceleration of domestic inflation, which rose to 2.4 percent in February 2026 from 2 percent in January. Despite this increase, Ricafort pointed out that the inflation rate remains within the government's target band of 2-4 percent for the year. He warned that the ongoing conflict in the Middle East could further contribute to domestic inflation and inflation expectations, driven by rising oil prices and potential increases in the cost of other commodities.