Manila: The manageable rise of the domestic inflation rate lifted sentiments in the local bourse on Tuesday, but the Philippine peso weakened against the US dollar.

According to Philippines News Agency, the Philippine Statistics Authority (PSA) reported earlier in the day the uptick in the domestic rate of price increases in September to 1.7 percent from the previous month's 1.5 percent, partly due to the impact of weather disturbances.

Amid the acceleration, the average inflation rate in the first nine months of the year stood at 1.7 percent, below the Bangko Sentral ng Pilipinas' 2 percent to 4 percent target this year. Investors took note of this positive development, resulting in gains in all counters, with the Philippine Stock Exchange index (PSEi) rising 1.39 percent to 6,083.83 points, and All Shares by 0.80 percent to 3,673.22 points.

Financials registered the biggest jump during the day at 2.23 percent, followed by Property, 1.49 percent; Industrial, 1.13 percent; Holding Firms, 0.83 percent; Mining and Oil, 0.47 percent; and Services, 0.43 percent. Volume reached 2.37 billion shares, amounting to PHP10.34 billion. Advancers led decliners at 97 to 92, while 60 shares were unchanged.

'The PSEi rose today as the market reacted positively to the latest inflation rate, which came in lower than expected. This figure helped restore confidence among market participants, boosting sentiment and encouraging renewed buying interest across key sectors,' said Luis Limlingan, Regina Capital Development Corp. head of sales. 'Momentum around AI (artificial intelligence) and big tech deals appeared to drive the upside, even as political noise lingered in the background,' he added.

On the other hand, the local currency weakened against the US dollar, closing at 58.35, compared to its 57.87 finish on Monday. It opened the day sideways at 58.05 and traded between 58.04 and 58.36. The day's average stood at 58.15. Volume reached USD1.19 billion, lower than the USD1.62 billion the previous day.