The local stock market dropped after the announcement of higher-expected inflation but managed to recover most of its losses at the end of the day.

The main index shed 7.14 points or 0.10 percent to close at 7,156.07 as the Property sector led the retreat although Banks and Mining firms advanced. Volume remained weak at 1.12 billion shares worth P4.17 billion as gainers slightly edged out losers 88 to 82 with 57 unchanged.

“Philippine shares remained quiet once again as the latest CPI reading remained with the acceptable range of many analyst, giving less pressure on the BSP to apply the brakes and raise rates,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “Outside, U.S. equities largely gained on Monday as traders shook off recession fears and bought tech shares that were beaten up during the first quarter.”

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local bourse pulled back as the surge in our inflation rate from February’s 3.0 pe to March’s 4.0 percent dampened investors sentiment.”

He noted that the low value turnover “shows that many investors are still on the sidelines due to the lingering uncertainties, from the Russia - Ukraine War, to the US’ inverting yield curve, to the nearing national elections.”