THE peso regained more ground, but the stock market fell back to the 6,300 level as trading resumed on Thursday following an Independence Day break.

The currency strengthened by 10 centavos to P58.58 against the dollar while the benchmark Philippine Stock Exchange index (PSEi) shed 0.30 percent, or 19.24 points, to close at 6,390.83.

The broader All Shares lost 7.05 points, or 0.20 percent, to 3,443.00.

The peso opened at P58.48:$1 and ranged from P58.47 to P58.69. Volume rose to P1.318 billion from Tuesday's P1.05 billion.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said that it appreciated after slightly lower US inflation data and the greenback's weakening against major global currencies.

Philstocks Financial Inc. research and engagement officer Mikhael Plopenio, meanwhile, said "investors sold shares at the last minute resulting in a three-day decline" for the PSEi.

He explained that "April's balance of trade deficit seemed to have weighed on investor sentiment as this poses depreciation risks to the already weakened Philippine peso."

"Remarks from President Ferdinand R. Marcos [Jr.], stating that inflation remains as a main concern due to uncontrollable forces, tempered rate cut hopes despite it staying within the government's target range," Plopenio added.

"The said factors resulted in the bourse closing below the 6,400 support level."

Luis Limlingan, managing director of Regina Capital Development Corp., said that "Philippine shares continued to tumble as investors digested the latest policy announcement from the Fed (US Federal Reserve) and May inflation data, which pointed to easing pricing pressures."

He noted that while the US central bank had kept interest rates unchanged as expected, "the Fed's projections showed only one rate cut is anticipated this year, citing still elevated levels of inflation."

Sector indices mostly closed in the red with property and services the day's only gainers, up by 1.04 percent and 0.01 percent, respectively. Mining and oil fell the most by 1.02 percent.

Losers outnumbered gainers, 110 to 73, while 48 were unchanged.