THE peso and stock market both started the week on a positive note with sentiment said to have been boosted by the latest data releases and rate cut expectations.

The currency strengthened by 14 centavos to P55.77 against the dollar while the benchmark Philippine Stock Exchange index (PSEi) advanced by 37.27 points, or 0.56 percent, to end the day at 6,680.45.

The broader All Shares likewise rose, by 0.49 percent or 17.16 points, for a 3,523.77 finish.

The peso opened trading at P55.85:$1 and ranged from P55.77 to P55.95. Volume reached P1.305 billion, down from the P1.696 billion recorded in the previous session.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the peso gained on continued growth in overseas Filipino worker remittances and "after the local stock market continued to gain for the 3rd straight day, gaining for most days since the start of 2024."

Philstocks Financial Inc. research associate Claire Alviar said the PSEi managed to extend its gains due to expectations that the country would employ non-monetary policy measures to control inflation.

If this pushes through, Alviar noted, investors can "anticipate further rate cuts ahead, boosting market sentiment."

Juan Paolo Colet, managing director at China Bank Capital Corp., said the bourse sustained its momentum on the back of "softer-than-expected" US December producer price data, which increased hopes that the Federal Reserve would start cutting policy rates in March.

Former Finance secretary Benjamin Diokno had said that the domestic policy rate could be reduced by as much as 100 basis points (bps) this year, exceeding the expected 75 bps rate cuts by the Fed.

Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said local shares continued to be bought up this month as "funds continued to make bets on the issues that would outperform for 2024."

Market participation improved, resulting in a net market value turnover of P4.94 billion.

All sector indices closed in green territory, led by mining and oil, with a 1.35-percent gain.

Advancers outnumbered decliners, 107 against 78, while 52 were unchanged.