The Philippine Stock Exchange index (PSEi) started the trading week on a positive note, gaining 42.38 points or 0.67 percent to close at 6,348.65 on Monday. The benchmark index broke free from its recent sideways movement as investors continued bargain hunting, buoyed by expectations that July inflation remained manageable.

Despite the uptick, overall trading activity was subdued. Net value turnover stood at only P5.04 billion, underscoring persisting investor caution amid domestic and global uncertainties. Foreign investors remained net sellers with net outflows amounting to P257.77 million.

Sectoral indices closed mixed. Property stocks led the charge with a 2.80 percent jump, while holding firms posted the biggest losses, falling by 0.56 percent. Market breadth was slightly positive, with 100 advancers edging out 91 decliners.

Luis Limlingan, Head of Sales at Regina Capital Development Corporation, said that investors are still in a wait-and-see mode ahead of the release of the country’s second-quarter GDP and July inflation data. 

"Wall Street ended last week with significant losses, the worst in months, following a disappointing US jobs report. All eyes are now on key trade figures – both exports and imports – for further direction," he noted.

Michael Ricafort, Chief Economist at Rizal Commercial Banking Corporation, added that while some volatility may persist, much of it has already been priced in. 

"There is the chance that the worst tariffs may have already passed, particularly for countries like the Philippines that have existing trade agreements with the US," he said.

Meanwhile, the peso strengthened, closing at P57.29 against the US dollar on Monday, improving from Friday’s close of P58.145, based on data from the Bankers Association of the Philippines.