Manila: Reports on the improvement of the Philippines' manufacturing sector contributed to the rise of the local bourse and the stabilization of the currency on Tuesday. The Philippine Stock Exchange index (PSEi) increased by 0.93 percent to 6,423.85 points, while the broader All Shares index rose by 0.47 percent to 3,799.36 points.

According to Philippines News Agency, most sectoral indices saw gains, with Holding Firms up by 2.21 percent, Mining and Oil by 2.18 percent, Property by 1.89 percent, and Industrial by 0.24 percent. However, there were declines in Financials, which dropped by 0.43 percent, and Services, which fell by 0.14 percent.

Trading volume reached 1.35 billion shares, totaling nearly PHP7.7 billion. Advancers surpassed decliners at 115 to 79, with 65 shares remaining unchanged. Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort noted that the 50.7 June 2025 S and P Global Philippine Manufacturing PMI (Purchasing Managers' Index) played a role, rising from the previous month's 50.1.

Ricafort also mentioned that the implementation of the Capital Markets Efficiency Promotion Act (CMEPA) Law, which reduces stock market transaction taxes, helped support the PSEi. This law aims to attract more foreign and local investors by lowering transaction costs, thus increasing trading liquidity in the local stock market.

Additionally, a correction in the US dollar-Philippine peso exchange rate contributed to the market's performance. The peso traded at the 56-level, after previously reaching the 57-level. The local currency closed at 56.3, slightly changed from its 56.33 close on Monday, with an opening trade at 56.25, down from 56.54 the previous day. It fluctuated between 56.37 and 56.15, with an average of 56.24 for the day. Trading volume increased to USD1.97 billion, up from Monday's USD1.82 billion.