THE peso edged up against the dollar on Tuesday, and the stock market regained more ground following last week's plunge.

The currency strengthened by 3 centavos to P58.77 versus the greenback, a result Rizal Commercial Banking Corp. chief economist Michael Ricafort said was due to the dollar slightly weakening against major global currencies.

The bargain-hunting that had lifted the benchmark Philippine Stock Exchange index (PSEi), he added, also factored in the peso's gain.

It opened trading at P58.73:$1 and ranged from P58.7 to P58.777. Volume reached P814 million, slightly higher than the P559 million recorded on Monday.

The PSEi, meanwhile, topped the 6,300 level during intraday trade but then pared the day's gains to 26.59 points, or 0.42 percent, to close at 6,299.05.

The broader All Shares index added 33.32 points, or 0.98 percent, to 3,441.09.

Philstocks Financials Inc. research associate Claire Alviar said the bourse gained for a second day as investors continued to hunt for bargains.

"[F]oreign investors were net buyers this session, recording a net inflow of P11 million after nine consecutive days of net foreign selling worth P4.45 billion," she added.

"Investors were also anticipating the Bangko Sentral ng Pilipinas meeting this week for clues on the timeline of interest rate cuts."

Net market value turnover stood at P3.93 billion.

Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said that "Philippine shares rallied just a point shy of the 6,300 level as investors continued to window dress ahead of the end of semester."

Most sector indices closed in the green, with services up the most by 2.25 percent. Holding firms and industrials lost ground, dropping by 0.92 percent and 0.18 percent, respectively.

Gainers edged out decliners, 93 to 92, while 52 were unchanged.