The Philippine stock market and local currency saw an encouraging boost on Tuesday, fueled by improved manufacturing data and favorable policy changes.
The Philippine Stock Exchange index (PSEi) climbed 0.93%, finishing at 6,423.85 points, while the broader All Shares index rose 0.47% to 3,799.36. Gains were seen across most sectors, led by Holding Firms (up 2.21%), Mining and Oil (2.18%), Property (1.89%), and Industrial (0.24%). Only Financials and Services slipped, dropping 0.43% and 0.14%, respectively.
Trading was active, with 1.35 billion shares changing hands and total value reaching nearly P7.7 billion. Market sentiment leaned positive, as advancers outnumbered decliners, 115 to 79, with 65 stocks unchanged.
Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael Ricafort attributed the market’s upbeat performance partly to the latest S&P Global Philippine Manufacturing Purchasing Managers’ Index (PMI), which rose to 50.7 in June from 50.1 in May. This expansion signals modest but steady growth in the sector.
Adding to investor optimism was the enactment of the Capital Markets Efficiency Promotion Act (CMEPA), which officially took effect Tuesday. The law reduces taxes on stock transactions—an incentive that Ricafort believes could stimulate higher trading activity and attract both local and foreign investors by lowering overall market costs.
On the currency front, the Philippine peso held firm against the US dollar, closing at 56.30, slightly up from Monday’s 56.33. The peso opened stronger at 56.25 and traded between 56.15 and 56.37 throughout the day, averaging 56.24. Dollar volume rose to $1.97 billion, up from the previous session’s $1.82 billion.
Ricafort noted that the peso’s slight recovery was also helped by a correction in the USD-PHP exchange rate, which eased back to the 56-level after hovering near 57 in recent days.
With manufacturing showing signs of revival and new laws set to make investing more appealing, both the market and the peso appear to be gaining solid footing mid-year.
