THE peso fell on Thursday but avoided a return to the P56:$1 level while the stock market posted a strong rebound back to 7,400 territory.

The currency weakened by eight-and-a-half centavos to P55.965 against the greenback, a result Rizal Commercial Banking Corp. chief economist Michael Ricafort said was due to the dollar gaining against major global currencies.

Trading started at P56.05:$1 and ranged from P55.94 to P56.09. Volume reached P1.373 billion, down from P1.539 billion in the previous session.

The benchmark Philippine Stock Exchange index, meanwhile, surged by 1.31 percent, or 96.12 points, to end the day at 7,458.74.

The broader All Shares index also rose, by 38.46 points or 0.98 percent, to 3,978.10.

Philstocks Financial Inc. senior research analyst Japhet Tantiangco said that after a brief pull back on Wednesday, the market had bounced back with "optimism ... fueled by cues of possible rate cuts from the Bangko Sentral ng Pilipinas (BSP)."

"According to BSP Governor Eli Remolona, the BSP may still cut policy rates in the fourth quarter of this year, 25 basis points each in their last two meetings," he added.

Tantiangco said that trading remained active with net value turnover of P6.88 billion, higher than the year-to-date average of P5.18 billion.

"Foreigners were net buyers with net inflows amounting to P4.79 billion."

Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said the recovery was "buoyed by the Asian Development Bank's (ADB) decision to maintain its GDP (gross domestic product) growth forecast for the Philippines at 6 percent for 2024 and 6.2 percent for 2025."

"The ADB attributed this outlook to easing inflation and expected policy adjustments that could stimulate domestic demand," he added.

Except for mining and oil, which slipped by 0.34 percent, all other sector indices closed in the green, led by financials that surged 2.59 percent.

Gainers outnumbered decliners, 111 to 80, while 61 were unchanged.

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