Concern over higher inflation for April continued to weigh on the local stock market.
The main index declined 31.00 points or 0.47 percent to close at 6,615.55 due to the weakness of the Property and Services counters as most other sectors were in the green. Volume rose to 764 million shares worth P6.37 billion as gainers edged out losers 94 to 93 with 55 unchanged.
“Local shares extended losses as investors capitalized on gains amidst mounting worries over potential inflation spikes in April, largely fueled by persistent upticks in food prices, notably rice and meat,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Following the Federal Reserve's recent meeting, Chair Jerome Powell seemingly dismissed immediate rate hikes, though the absence of hints regarding future cuts leaves traders navigating uncertain terrain.”
Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse extended its decline as investors maintained caution amid expectations of higher inflation rate this April. Also, investors are awaiting the outlook of the Bangko Sentral ng Pilipinas (BSP) regarding interest rates due to lingering inflationary pressures.”
“In addition, foreign investors weighed on the market further, as they registered a net outflow of P1.29 billion,” she noted.