THE peso edged higher and the stock market also sustained its rally on Thursday at the end of a shortened trading week, with analysts noting that positive economic data was continuing to lift sentiment.

The currency strengthened by just under four centavos to P55.911 against the dollar, while the benchmark Philippine Stock Exchange index (PSEi) climbed by 0.29 percent, or 20.12 points, to 6,850.16.

The broader All Shares index also advanced, adding 7.45 points, or 0.21 percent, for a 3,574.21 close.

The peso opened trading at P55.98:$1 and ranged from P55.85 to P56. Volume reached P1.196 billion, lower than the P1.295 billion recorded in the previous session.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the latest gross international reserves (GIR) level, which, despite a drop, remained above $100 billion, showed that the country still had more than enough to support the peso.

Lower oil prices also played a role and the "peso also strengthened vs. the US dollar after continued gains in the local stock market (PSEi) to new highs in nearly a year," he added.

Philstocks Financial Inc. researcher Mikhail Plopenio said the PSEi edged higher as investors took cues from gains on Wall Street "amid optimism toward US corporate earnings."

He added that local economic data released earlier this week also "continued to satisfy investors, which added to the positive sentiment for this session."

"The bourse started strong and even reached 6,900 intraday, but last-minute selling pressures limited gains," he noted.

Market participation was strong, resulting in a net value turnover of P6.43 billion — higher than the year-to-date average of P4.9 billion.

Foreigners were net buyers, recording a net inflow of P953.69 million.

Sector indices had mixed performances, with financials leading the gainers with a 1.61-percent climb. The mining and oil index dropped the most at 1.11 percent.

Advancers outnumbered decliners, 106 against 91, while 46 were unchanged.