Local stocks climbed for the second consecutive session as a strengthening peso and a narrowing trade gap bolstered investor confidence ahead of key economic growth data.

The Philippine Stock Exchange index (PSEi) advanced 48.88 points, or 0.78 percent, to finish at 6,355.78 on Wednesday, Jan. 28.

The services sector spearheaded the gains, offsetting weakness in holding firms and real estate developers. While market breadth remained slightly negative—with 106 decliners narrowly outstripping 102 gainers—trading activity remained robust.

Investors exchanged 1.58 billion shares valued at ₱7.53 billion.

The equity market’s resilience was largely underpinned by a recovery in the local currency. The peso appreciated to ₱58.74 against the Unted States dollar, marking its strongest level since late December.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., noted that the peso’s move to its best position in more than a month acted as primary catalyst for the day’s upward trajectory.

Sentiment was further buoyed by the latest trade data, which revealed that the country’s trade deficit had hit a four-year low.

Luis Limlingan, managing director at Regina Capital Development Corp., said buying pressure intensified during the session as participants positioned themselves ahead of the government’s release of gross domestic product data.

The upcoming gross domestic product (GDP) print is expected to provide clearer picture of whether high interest rates are beginning to significantly dampen consumer spending, which accounts for the lion's share of the Philippine economy.

Despite the headline gain, the internal dynamics of the market suggested some lingering caution. The decline in property stocks indicates that some investors remain wary of the sector's sensitivity to borrowing costs. However, the heavy turnover suggests that institutional appetite remains healthy.

As the market eyes the 6,400 psychological resistance level, the focus shifts entirely to tomorrow’s macroeconomic indicators to determine if this two-day rally has sufficient fundamental legs to continue.