The Philippine stock market dropped further on concern that the April inflation rate remained high.
The main index fell 59.46 points or 0.94 percent to close at 6,299.69 with only the Mining and Oil counter advancing.
Volume also fell, down to 4.15 billion shares worth P3.89 billion aa losers beat gainers 114 to 92 with 43 unchanged.
“Local shares fell caused by concerns regarding rising inflation and possible tax increases in the US,” said Regina Capital Development Corporation Managing Director Luis Limlingan
He added that, “investors sold on news with the release of April CPI and more earnings from the PSEi constituents.”
Philstocks Financial Research Associate Claire Alviar said “The local bourse closed below 6,300 as the inflation rate came at the same figure in March of 4.5 percent.”
She explained that, “This is within the BSP's forecast range in April but this figure is higher than the BSP's target for this year of 2-4 percent given the supply side pressures, which is not helpful amidst the Covid-19 pandemic.”
AAA Equities Head of Research Chris said “The PSEi continued lower and marked a new low for 2021… The market is slowly giving up all the gains from the last rally that started in October.”
He said April inflation “should mean that prices are peaking and may begin to decline and should have generated some optimism, although most remain concerned as the price of meat continues to rise.”
Mangun added that, “Trading volumes also declined as more investors lost interest in the market. “
He added that, “The steady decline in new COVID-19 cases has failed to generate optimism as it may not lead to an easing of restrictions in the coming weeks. Investors are now considering the possibility of staying under current restrictions until a substantial percentage of the population has been fully vaccinated.”