The local stock market bounced on Wall Street’s lead despite the announcement that inflation rate rose further in May.

The main index rose 37.13 points or 0.55 percent to close at 6,754.01 as the Mining and Oil sector led all counters in the advance. Volume remained weak though at 877 million shares worth P4.96 billion as gainers edged out losers 96 to 90 with 42 unchanged.

“Philiippine shares edged higher on a relatively quiet session despite the release of the May CPI reading,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “For May, inflation continued to rise at 5.4 percent, which was in line with the Bloomberg median consensus making this more of a non-event.”

“The market moves were also influenced by the US10-yr treasury yield action, which spiked by up to 3 percent, hitting its highest level in almost a month. Wall Street managed to rebound from a losing week and as gains were capped by a jump in yields,” Limlingan added.

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “Trading was anemic as many investors stay out of the market due to lingering concerns, primarily the high inflation expectations backed by May’s inflation print, together with rising oil prices, weakening Peso, and increase in minimum wages.”