Manila: The local stock market rebounded on Thursday amid improving investor sentiment over reports of a possible peace deal between the United States and Iran, while the Philippine peso weakened against the US dollar. The Philippine Stock Exchange index (PSEi) gained 0.64 percent, or 39.09 points, to close at 6,153.66, while the broader All Shares index rose 0.35 percent to 3,393.41.

According to Philippines News Agency, three of the six sectoral indices ended in positive territory, led by Services, which surged 2 percent. Property advanced 1.72 percent and Holding Firms, 0.11 percent. Meanwhile, Mining and Oil declined 2.87 percent, followed by Financials at 0.68 percent and Industrials at 0.27 percent.

Trading volume reached 447.17 million shares valued at PHP7.15 billion. Decliners outnumbered advancers, 100 to 82, while 56 issues were unchanged. 'The Philippine market ended in positive territory, recovering from yesterday's broad-based sell-off, supported by improved investor sentiment following reports of a peace deal between the US and Iran,' said Luis Limlingan, head of sales at Regina Capital Development Corp.

'Gains were sustained for most of the session, although selective profit-taking emerged in the afternoon, particularly among interest rate-sensitive stocks.' Limlingan noted that the market's performance came even as investors weighed the Bangko Sentral ng Pilipinas' (BSP) latest policy move and reassessed sectors vulnerable to higher borrowing costs.

Earlier in the day, the BSP's policy-making Monetary Board raised the central bank's key policy rates by 25 basis points, citing rising inflationary pressures driven by elevated fuel and food prices. Meanwhile, the peso depreciated to 60.56 against the US dollar from 60.39 on Wednesday.

The local currency opened at 60.60 compared to the previous day's opening level of 60.24, and traded within a range of 60.41 to 60.65, bringing the average for the day to 60.53. Volume slipped to USD1.62 billion from USD1.65 billion a day earlier.