The Philippine Stock Exchange index (PSEi) closed higher on Monday, recovering from last week’s steep drop as bargain hunters reentered the market ahead of key trade talks between the Philippines and the United States.

The main index climbed 49.02 points or 0.78 percent to finish at 6,352.74, supported by hopes that President Ferdinand Marcos Jr.’s upcoming trip to Washington could pave the way for a more favorable bilateral trade agreement before the 1 August deadline.

“The PSEi upped this Monday back a little above the 6,350 mark, driven by investors seeking cheaper price together with continued vigilance as investors remain alert to the global trade developments as negotiations between US and PH regarding tariffs will commence this week,” said Luis Limlingan, head of sales at Regina Capital Development Corporation.

He added that market players are also watching the current earnings season for possible cues to drive the next leg of the rally.

“Further advancements on stock prices could be taken once negotiations and ongoing earnings season sentiments kick in,” Limlingan noted.

However, trading remained sluggish, with net value turnover settling at P5.24 billion – well below the month’s P6.88 billion average. Foreign investors posted a net outflow of P36.30 million, reflecting lingering caution over external developments.

Sectoral performance was mixed, with Conglomerates rising the most at 0.91 percent. Property, Industrials, and Financials also posted modest gains. Mining and Oil was the only sector to finish in the red, dipping 0.25 percent.

Overseas, Wall Street’s performance on Friday was muted. The Dow Jones and S&P 500 ended flat as investors weighed mixed earnings results and economic signals.

“Lingering concerns over trade policy continue to introduce a layer of uncertainty,” Limlingan added.

Meanwhile, the peso slightly weakened, closing at 57.175 against the US dollar versus 57.145 in the previous session, based on data from the Bankers Association of the Philippines.