The Philippine Stock Exchange index (PSEi) edged higher for the second consecutive session on Tuesday, climbing 8.36 points or 0.13 percent to close at 6,433.60 – a rebound from the intraday low of 6,393.31 and one of the highest finishes since mid-May. The benchmark index is also hovering near six-month highs last seen in early January.

Luis Limlingan, head of sales at Regina Capital Development Corporation, said local shares were buoyed by growing market confidence that the Bangko Sentral ng Pilipinas (BSP) will maintain a dovish policy stance after softer-than-expected June inflation data.

“Sentiment also improved as investors downplayed the near-term impact of US tariff threats, after President Donald Trump announced new import duties to take effect on August 1, pending trade negotiations,” Limlingan noted.

Meanwhile, Michael Ricafort, chief economist at Rizal Commercial Banking Corporation, attributed the recent gains to a mix of favorable domestic data and policy developments.

According to Ricafort, the PSEi’s strength followed mostly better local economic reports on employment, manufacturing, bank lending, and gross international reserves. He added that the recently implemented Capital Market Efficiency Promotion Act (CMEPA), which slashed stock transaction taxes starting 1 July, is already drawing more local and foreign investors into the market.

There is a slightly stronger peso, which appreciated to the 56.30 level against the US dollar – its best showing since mid-June – as another supportive factor. Additionally, global risk appetite was lifted by signs that Trump may be open to further trade negotiations despite the newly announced tariffs, which were extended to 1 August from the initial 9 July deadline.

“That could lead to some compromise on the said tariff rates,” Ricafort said, citing Trump’s recent TACO (tariff and compromise openness) track record.