The local stock market posted a marginal gain on Tuesday, Aug. 5, following the government's report that inflation eased in July.

The Philippine Stock Exchange index (PSEi) rose by 4.98 points, or 0.08 percent, to close at 6,353.63. The Property sector led the advance, while only the Banks sector declined. Volume improved to 1.27 billion shares valued at ₱5.64 billion, as gainers outnumbered losers 93 to 86, with 67 unchanged.

“The PSEi closed up as investors continue to digest the recent update on Philippine inflation,” said Luis Limlingan, managing director at Regina Capital Development Corporation. “At the same time, companies are still releasing their first-half earnings results, which play a significant role in shaping investor sentiment and influencing the broader market’s direction.”

He added that the rally in the United States (US) stock market also contributed to the positive sentiment. “Investors found a reason to be optimistic, pushing past recent tariff anxieties and reacting to expectations of what the central bank may do with interest rates.”

Japhet Tantiangco, research manager at Philstocks Financial, noted that “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 BSP's policy outlook following the latest inflation print.”

He also pointed out that “the positive cues from Wall Street helped in Tuesday's session. However, gains were tempered as investors maintained a cautious stance while waiting for the country's GDP [gross domestic product] print.”