The Philippine Stock Exchange Index (PSEi) started the week on a positive note, rising 35.96 points, or 0.58 percent, to 6,223.99, marking its fourth consecutive day of gains, while the local currency depreciated by 8 centavos to P61.49 from P61.41 previously.

Investor sentiment remained constructive as bargain hunting continued, supported by expectations of a more favorable inflation environment following the recent decline in global oil prices.

Investors remain cautious

However, the market’s advance came despite relatively light participation, with net value turnover reaching only P4.99 billion, indicating that many investors remain cautious ahead of the release of June inflation data by the Philippine Statistics Authority on Tuesday morning.

Foreign investors were once again net sellers during the session, recording net outflows of P491.60 million, although this was insufficient to derail the broader market rally.

Sector performance was largely positive. Banks led the advance, gaining 1.85 percent, reflecting optimism over the domestic economic outlook and resilient credit demand. The services sector was the lone decliner, falling 1.72 percent.

Among individual stocks, ACEN Corp. (ACEN) emerged as the top index gainer, climbing 3.55 percent to P3.21, while Puregold Price Club Inc. (PGOLD) was the biggest laggard, declining 2.78 percent to P40.20.

Peso slightly weakens

In the foreign exchange market, the peso weakened slightly against the US dollar.

According to the Bankers Association of the Philippines (BAP), the peso closed at P61.491 per US dollar, compared with P61.415 on 3 July, representing a depreciation of approximately 7.6 centavos, or 0.12 percent.

During Monday’s session, the currency traded between P61.45 and P61.55, while the BAP weighted average settled at P61.516 and the FX settlement rate at P61.513.

Relatively light trading volume

Trading volume was relatively light at US$876.75 million, down from US$1.60 billion in the previous session, suggesting a more cautious market environment.

The peso’s modest weakness over the past 24 hours was largely driven by renewed demand for the US dollar after stronger-than-expected US economic indicators, including lower-than-expected unemployment data, reinforced expectations that the Federal Reserve could maintain relatively elevated interest rates for longer.