THE local stock barometer inched toward the 7,000-point level on Tuesday with an intraday high of 7,008.87 but closed at 6,973.41 as investors cheered for the US Federal Reserve's (Fed) signal of monetary policy easing soon.

The local currency also opened the week stronger against the greenback.

The benchmark Philippine Stock Exchange index (PSEi) climbed 0.16 percent, or 11.45 points, to 6,973.41.

The broader All Shares index grew 0.31 percent, or 11.55 points, to 3,761.28.

Japhet Tantiangco, senior research analyst at Philstocks Financial Inc., said that "the local market continued with its rally," adding that "sentiment got a boost from the Federal Reserve's rate cut cues from the Jackson Hole Economic Symposium."

"Investors cheered the Fed's dovish signals as monetary policy easing by the Fed would give more room for the BSP (Bangko Sentral ng Pilipinas) to ease their policy, too," he added.

Regina Capital Development Corp. Managing Director Luis Limlingan, for his part, said that "Philippine shares slowly inched toward the 7,000 level as investors start[ed] to rebalance ahead of both the MSCI and the end of month closing."

"There are several speaking engagements from Fed officials this week," he added.

"On the local front, investors await the release of the July budget balance on Wednesday and July PPI (producer price index) on Friday," Limlingan said.

Sectors were mixed with the properties taking the lead by gaining 2.72 percent, while services were at the bottom, losing 0.40 percent.

Gainers outnumbered decliners, 110 against 94, while 51 names were unchanged.

Peso closes stronger

The Philippine peso started the week stronger against the greenback on Tuesday.

The currency strengthened by 5 centavos to P56.281 against the greenback from the previous P56.333, data from the Bankers Association of the Philippines (BAP) showed.

It opened trading at P56.222:$1 and ranged from P56.17 to P56.31. The volume reached P1.587 billion.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., noted that the peso strengthened as the US dollar remained weak against major global currencies, continuing its trend at 13-month lows.

He added that the dovish signals from Federal Reserve Chairman Jerome Powell also contributed to the recent gains of the peso.

"The peso also strengthened after the continued gains in the local stock market (PSEi) to new highs in nearly five months," Ricafort said.