The local stock market ended the week with a steep drop after US bourses fell on concern that the Fed may raise rates faster in reaction to high inflation.

The PSEi’s loss kept mounting before closing lower by 228.55 points or 3.38 percent to close at 6,530.04 as the Property sector led the retreat across the board. Volume inched up to 661 million shares worth P6.02 billion as losers swamped gainers 131 to 45 with 40 unchanged.

“Philippine shares plunged deep into the red ahead of the US May CPI report tonight. Investors are looking to see if inflation has peaked or if the Fed will need to be even more aggressive to tamp down price increases,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “Last night, it was reported that initial jobless claims (US) increased more than expected while preliminary data showed a 54.07 percent jump in the country's trade deficit to $4.773 billion.“

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local market plunged on the back of local economic worries. Investors digested our April labor market figures which showed a month-on-month decline in our labor market participants and number of employed of 2.92 percent and 2.86 percent, respectively.“

He noted that, “Inflation concerns amid the elevated oil prices and weakening peso also continued to weigh on sentiment.”