Manila: The Philippine Stock Exchange index (PSEi) started the week higher, while the peso strengthened against the U.S. dollar on expectations that a peace deal between the United States and Iran will be signed later this week.

According to Philippines News Agency, the local bourse's main index rose 6.14 percent to 6,272.88 points, while the broader All Shares index gained 4.39 percent to 3,434.35 points. All sectoral indices also advanced, led by Financials, which jumped 9.04 percent. It was followed by Mining and Oil, up 7.41 percent; Holding Firms, 5.98 percent; Services, 4.97 percent; Property, 4.79 percent; and Industrial, 2.56 percent.

Volume remained thin at 679.39 million shares valued at PHP12.75 billion. Advancers outnumbered decliners, 144 to 58, while 43 shares were unchanged. 'The local market jumped as investors cheered the US and Iran's peace deal to be signed on June 19. The peace deal is seen to bring oil prices lower which in turn bodes well for our country's inflation outlook,' Philstocks Financial Inc. said in a market report. The report noted that the price of Brent crude had declined toward the USD80-per-barrel mark following the announcement of the peace pact.

Meanwhile, the local currency closed at 60.48 against the U.S. dollar, stronger than its 61.35 finish on Thursday last week. There was no trading last Friday due to the Independence Day holiday. The peso opened at 60.60 from the previous session's 61.35 and traded between 60.73 and 60.44, bringing the day's average to 60.58. Volume reached USD1.68 billion.