SUSTAINED investor optimism saw the stock market and the peso gaining on Monday, with the benchmark Philippine Stock Exchange index (PSEi) nearing 6,700 territory and the currency posting its best finish in nearly two months.

The PSEI added 74.53 points, or 1.13 percent, to end the day at 6,681.47, while broader All Shares went up by 28.73 points, or 0.83 percent, for a 3,481.17 finish.

The peso, meanwhile, gained two centavos to close at P56.64 against the dollar, its best finish since September 1’s P56.42:$1.

Japhet Tantiangco, research manager at Philstocks Financial Inc., said investors remained optimistic that the US Federal Reserve and the Bangko Sentral ng Pilipinas would ease up on interest rates hikes next month.

“Moreover, the peso’s sustained position above the 57.00 per US dollar level and the decline in global oil prices also gave sentiment a boost. Moreover, foreign funds also helped in the rally with net foreign buying for the day registering P914.01 million,” he added. Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the PSEi “continued to gain again after global crude oil prices eased further to new 11-month lows, which erased all the increase since the start of 2022 and also erased the increase since the start of the Russia-Ukraine war on February 24, 2022.”

The peso will also benefit as further rollbacks in local pump prices “could also help narrow the country’s net imports/ trade deficit,” he added.

Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said investors were looking forward to US data releases later this week and the latest purchasing managers index for the Philippines.

The property sector was the day’s only loser, shedding 0.58 percent, while mining and oil jumped the most by 4.21 percent.

A little over 729.87 million shares worth P8.68 billion changed hands on Monday.

Advancers overwhelmed decliners, 112 to 77, while 40 securities remained unchanged.