The local stock market fell in anticipation of a spike in the June inflation rate while the peso continues to weaken.
The main index dropped 94.57 points or 1.49 percent to close at 6,255.37 as Conglomerates and Banks led the retreat although the Mining and Oil counter managed to advance. Volume firmed up to 1.28 billion shares worth P5.55 billion as losers swept gainers 139 to 44 with 49 unchanged.
“Philippine shares slid as investors braced for the June CPI report. The latter, slated for Wed release, is expected to spike by 8.8 percent year-on-year in June, as per Dow Jones' survey of economists,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He noted that, “The likely hot reading could prompt the Fed to hike another 75bps during this month’s meeting.“
Philstocks Financial Research and Engagement Officer Claire Alviar said “The local bourse dropped as the market digests the weakening peso while waiting for the US inflation rate.”
She added that, “Almost all markets globally await the inflation print in the US as it will greatly influence the decision of the Federal Reserve regarding interest rates which will have a negative impact on almost all currencies once the US Dollar gets stronger if the Fed will be more aggressive in monetary tightening.”