Manila: The local stock barometer rebounded on Tuesday following reports that monetary authorities are ruling out further interest rate hikes due to slower domestic economic growth, though the peso closed weaker against the United States dollar. The Philippine Stock Exchange index (PSEi) rose 0.60 percent to 6,326.89 points, and the broader All Shares by 0.50 percent to 3,437.92 points.

According to Philippines News Agency, sectoral indices finished mixed but mostly positive, led by Mining and Oil (up 2.18 percent), Property (up 1.84 percent), Financials (up 1.52 percent), and Industrial (up 0.13 percent). On the other hand, Holding Firms fell 0.12 percent and Services, 0.007 percent. Volume reached around 881 million shares amounting to PHP5.13 billion. Advancers led decliners at 98 to 91, while 64 shares were unchanged.

Regina Capital Development Corporation head of sales Luis Limlingan attributed the PSEi's rebound to expectations that the Bangko Sentral ng Pilipinas will maintain steady policy rates. This followed a further deceleration in second-quarter gross domestic product (Q2 GDP) growth to 2.3 percent, down from 2.8 percent in the previous quarter, due to the economic impact of elevated fuel prices. "The softer Q2 GDP growth outlook eased concerns over additional monetary tightening. Investors responded positively, supporting selected gains across the market," he said.

Meanwhile, the local currency finished the day at 61.26 to a US dollar from its 60.70 close Monday. Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the peso's weakening partly to a spike in global crude oil prices driven by developments in the Middle East. It opened the day's trade at 60.9, weaker than the previous session's 60.85. It traded between 60.9 and 61.26, bringing the day's average to 61.10. Volume reached nearly USD1.6 billion from USD1.47 billion a day ago.