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PHILIPPINE STOCKS edged higher on Tuesday as market sentiment got a boost from slower July inflation, which boosted bets of another rate cut as early as this month.

The bellwether Philippine Stock Exchange index (PSEi) rose by 0.07% or 4.98 points to 6,353.63, while the broader all shares index climbed by 0.11% or 4.34 points to 3,770.94.

“The local market’s sideways movement closed in the positive territory as appreciation of inflation’s decline last July took over. Investors are also optimistic toward the Bangko Sentral ng Pilipinas’ (BSP) policy outlook following the latest inflation print,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“The PSEi closed at 6,353.63, up by 0.07%, as investors continue to digest the recent update on Philippine inflation,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Headline inflation slowed to 0.9% last month from 1.4% in June and 4.4% in July 2024, the Philippine Statistics Authority reported on Thursday.

This was the lowest consumer price index in nearly six years or since the 0.6% in October 2019. The figure was also within the BSP’s 0.5% to 1.3% forecast for the month.

“On balance, a more accommodative monetary policy stance remains warranted. Emerging risks to inflation from rising geopolitical tensions and external policy uncertainty will require closer monitoring, alongside the continued assessment of the impact of prior monetary policy adjustments,” the central bank said in a statement.

However, the market’s gains were tempered ahead of the release of second quarter gross domestic product (GDP) data on Thursday (Aug. 7), Mr. Tantiangco said.

“At the same time, companies are still releasing their first-half earnings results, which play a significant role in shaping investor sentiments and influencing the broader market’s direction,” Mr. Limlingan added.

Almost all sectoral indices closed higher on Tuesday. Property climbed by 1.02% or 24.75 points to 2,451.49; services increased by 0.94% or 20.95 points to 2,233.34; mining and oil went up by 0.92% or 83.33 points to 9,058.44; holding firms climbed by 0.26% or 13.96 points to 5,356.27; and industrials inched up by 0.03% or 2.80 points to 9,072.59.

Meanwhile, financials dropped by 1.19% or 26.57 points to 2,198.42.

“Converge ICT Solutions, Inc. was the day’s index leader, climbing 3.67% to P18.08. Bank of the Philippine Islands was the main index laggard, falling 2.64% to P121.50,” Mr. Tantiangco said.

Value turnover climbed to P5.67 billion on Tuesday with 1.28 billion shares traded from P5.2 billion with 797.02 million shares exchanged on Monday.

Advancers bested decliners, 93 versus 86, while 67 names were unchanged.

Net foreign selling declined to P153.3 million on Tuesday from P257.77 million on Monday. — Revin Mikhael D. Ochave