THE peso snapped a four-day decline on Tuesday, but the stock market closed at its lowest so far for the year with investors said to be worried about the direction of interest rates.

The currency strengthened by 3 centavos to P58.62 against dollar, a result Rizal Commercial Banking Corp. chief economist Michael Ricafort said was due to continued growth in overseas Filipino worker remittances.

It opened trading at P58.68:$1 and ranged from P58.6 to P58.73. Volume fell to P858 million from Friday's P1.078 billion. Philippine financial markets were closed on Monday for the Eid al-Adha holiday.

The benchmark Philippine Stock Exchange index, meanwhile, shed 14.90 points, or 0.23 percent, to close at 6,368.80. It last closed lower at 6,255.74 on Dec. 12, 2023.

The broader All Shares index, meanwhile, slipped 0.21 percent, or 7.21 points, to 3,440.54.

Mikhael Plopenio, Philstocks Financial Inc. research and engagement officer, said "the local market dropped as investors were weighed by the unclear direction of the Federal Reserve (Fed) and the Bangko Sentral ng Pilipinas (BSP) regarding their rate cut timing."

"Adding to the woes were the net outflows amounting to P262.54 million," he continued.

"Investors continued to stay on the sidelines amid a lack of positive catalysts resulting in a tepid net market value turnover of P2.85 billion, lower than the year-to-date average of P5.03 billion."

Regina Capital Development Corp. Managing Director Luis Limlingan also said that "the local bourse opened this shortened trading week in the red amid talks that the BSP to implement fewer rate cuts this year, taking cues from the US Fed moves."

Sector results were mostly positive with financials (-1.97 percent) and services (-0.42 percent) the only decliners. Industrials had the biggest gain of 0.84 percent.

Losers edged out gainers, 96 to 86, while 51 were unchanged.

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