Local stocks extended a winning streak to a second session as strengthening peso lured investors back to the equity market, pushing the benchmark index to its highest level in nearly seven months.

The Philippine Stock Exchange index (PSEi) advanced 24.22 points, or 0.37 percent, to settle at 6,498.82 on Wednesday, Feb. 11. The gauge climbed as high as the 6,500 psychological resistance level during intraday trading before paring gains in the final minutes.

While mining companies led the day's gains, the broader advance was tempered by profit-taking in the services and conglomerate sectors.

Market activity increased significantly, with volume rising to 2.95 billion shares valued at ₱9.15 billion. Breadth remained positive, as 106 issues rose against 89 that fell, while 69 remained unchanged.

The rally was underpinned by a combination of currency strength and resilient domestic economic data. The peso’s continued appreciation against the United States (US) dollar has improved the outlook for local assets, making Philippine equities more attractive to both domestic and foreign participants.

Sentiment was further bolstered by December bank lending data, which showed a 9.2 percent year-on-year expansion, suggesting that credit demand remains robust despite the high interest rate environment.

“The PSEi extended its rise, backed by the appreciation of the local currency,” said Japhet Tantiangco, research manager at Philstocks Financial. “Investors also appreciated the country's bank lending data last December which posted a growth of 9.2 percent year-on-year.”

The market is also beginning to position itself ahead of the Bangko Sentral ng Pilipinas Monetary Board meeting scheduled for next week. Traders are looking for cues on the central bank’s policy trajectory as inflation pressures fluctuate.

According to analysts at AP Securities, the market’s brief breach of the 6,500 level indicated strong bargain-hunting activity, though some investors chose to lock in gains before the close.

Beyond economic indicators, a reduction in political risk contributed to the upward momentum. Michael Ricafort, chief economist at Rizal Commercial Banking Corp., noted that the index reached its highest point since July 14, 2025.

He cited the dismissal of an impeachment complaint against the president as a key driver in reducing political noise and uncertainty. Furthermore, progress on priority legislation, including governance reforms and the anti-political dynasty bill, provided a tailwind for the market.