The local stock market rose on Tuesday by 27.23 points, or 0.42 percent, to close at 6,556.66 as Bangko Sentral ng Pilipinas maintained a dovish position on the rate cut.

BSP Governor Eli Remolona said that the central bank "cannot wait too long before cutting interest rates as this poses downside risks to the economy’s output," said Philstocks Financial Inc. research and engagement officer, Mikhail Plopenia, adding that the BSP chief anticipates a likely rate cut by the third and fourth quarters.

“The rate cut narrative seems to boost investors’ confidence, as many are anticipating it since the start of the year,” Plopenia said in a Viber message. The holding firm sector gained the most, increasing by 0.90 percent, while banks were at the bottom, losing by 0.77 percent.

“Among the index members, Century Pacific Food Inc. [PSE: CNPF] was at the top, rising 5.38 percent to P34.25. BDO Unibank Inc. [PSE: BDO] lost the most, dropping 2.83 percent to P140.90,” Plopenio said.

The peso closed at P58.44 from a dollar. Rizal Commercial Banking Corporation chief economist Michael Ricafort said the peso’s recent stabilization at the 58.50 to 58.80 exchange levels is a good signal for the financial markets and the overall economy, again lower or better than the immediate high of 58.92 posted on 27 June or more than a week before.

He added global crude oil prices again corrected lower to new one-week lows on ceasefire talks recently between Hamas and Israel.