MANILA - The Philippine stock market ended Monday on a positive note, buoyed by the anticipation of a decline in August inflation rates, although the peso experienced a downturn against the U.S. dollar. The benchmark Philippine Stock Exchange index (PSEi) climbed by 25.87 points to settle at 6,923.41, with the broader All Shares index also seeing a rise of 8.60 points to 3,751.41.

According to Philippines News Agency, Research Manager at Philstocks Financial, the local market's gain of 0.38% to 6,923.41 was driven by expectations that inflation had eased from July's rate of 4.4%. "This optimism follows the Bangko Sentral ng Pilipinas' (BSP) inflation forecast for August, which ranged from 3.2% to 4.0%. Investors were also influenced by the positive close on Wall Street last week," Tantiangco explained. Despite the overall market gain, sector performances were mixed, with conglomerates leading the gains, up by 1.27%, while mining stocks lagged, dropping by 2.28%.

On the currency front, the peso weakened, closing at 56.38 against the dollar, compared to last Friday's finish of 56.111. The currency fluctuated within a narrow range, opening at 56.22 and peaking at 56.4, with a weighted average of 56.317 for the day.

Trading activities were limited due to the early closure of markets following the suspension of government work in the National Capital Region, caused by Tropical Storm Enteng. The Bangko Sentral ng Pilipinas also announced on its Facebook page that trading in the US dollar and Philippine peso, along with its monetary operations, would be suspended for the day due to the storm.