The peso started the week stronger but the stock market fell following declines on Wall Street.

The currency strengthened by 20 centavos to P55.37 against the dollar while the benchmark Philippine Stock Exchange index (PSEi) shed 69.97 points, or 1.01 percent, for a 6,872.24 finish.

The broader All Shares index also slipped, by 0.78 percent or 28.09 points, to 3,574.72.

The peso opened at P55.59:$1 and ranged from P55.37 to P55.65. Volume reached P1.092 billion, slightly lower than the P1.208 billion recorded in the previous session.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso gained as a measure of the US dollar against major global currencies eased to new lows and US Treasury yields also fell.

Philstock Financial Inc. research associate Claire Alviar, meanwhile, said the PSEi took its cues from losses on Wall Street last Friday.

Traders, she added, continued to await US inflation news due Tuesday, US time.

Regina Capital Development Corp. Managing Director Luis Limlingan said the inflation report "may likely stir a new course of rhetoric" as to how the US Federal Reserve would act in the coming months.

Foreign investors were net sellers, recording a net outflow of P277.68 million.

Market participation was weak, resulting in a net value turnover of P3.46 billion – lower than the year-to-date average of P4.71 billion.

All sector indices closed in the red, with property dropping the most by 2.7 percent.

Decliners overwhelmed advancers, 125 against 62, while 53 were unchanged.