Manila: The local stock market rebounded on Tuesday on expectations of manageable inflation this year, while the peso ended flat against the US dollar. The Philippine Stock Exchange index (PSEi) rose 1.67 percent to 6,401.96 points, while the broader All Shares index gained 1.11 percent to 3,548.44 points.

According to Philippines News Agency, all the sectoral indices also gained during the day, led by Mining and Oil which surged by 4.62 percent, trailed by Property, 2.98 percent; Services, 1.73 percent; Industrial, 1.22 percent; Financials, 1.20 percent; and Holding Firms, 1.16 percent. Trading volume reached 1.15 billion shares valued at PHP6.91 billion. Advancers outnumbered decliners, 134 to 84, while 60 issues were unchanged.

Luis Limlingan, Regina Capital Development Corporation head of sales, stated that the main index 'ended higher amid cautious trading as investors remained on the sidelines ahead of the inflation print, which is broadly expected to stay stable.' The Philippine Statistics Authority (PSA) is set to release the January 2026 inflation data on Thursday.

The Bangko Sentral ng Pilipinas (BSP) forecasts January inflation to range from 1.4 percent to 2.2 percent, with possible upward pressure from higher rice and fish prices. Despite cautious trading, Limlingan noted that market sentiment was supported by renewed optimism after Fitch Solutions' BMI maintained its 2026 Philippine growth forecast at 5.2 percent, indicating confidence in a recovery in public and private investment despite recent growth disappointments.

'This may have helped offset lingering concerns over domestic uncertainties and tempered risk aversion in the market,' he said. Meanwhile, the peso closed unchanged at 58.89. It opened stronger at 58.88 from the previous session's 58.90 and traded between 58.83 and 58.93, averaging 58.86. Foreign exchange volume rose to USD1.08 billion from USD773 million the previous day.