The local stock market weakened as investors fretted over the possibility of higher US interest rates.

The main index dropped 34.36 points or 0.55 percent to close at 6,164.89 as all indices retreated, led by the interest rate-sensitive Property sector.

Volume was low with 1.09 billion shares worth P4.48 billion changing hands as losers beat gainers 127 to 79 with 40 unchanged.

“Philippine shares kicked off Monday on a weak note on concerns about the Federal Reserve Policy in the face of rising inflation pressures,” said Re Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “Strong economic data has put pressure on growth stocks, which are more likely to be impacted by potential interest hike.”

Philstocks Financial Research Associate Claire Alviar said the “PSEi dropped amid a lack of catalyst in the market. There was no fresh lead in the market and most traders were seen on the sidelines given the weak participation with a value turnover of only P4.4 billion.”

She added that, “The negative sentiment also came from overseas markets. Regional peers start this week with cautious trading as they wait for the announcement of the inflation rate in the US since this could affect the stance of the Fed on the monetary policy.”