Stocks drop prior to inflation report


Local share prices fell ahead of the release of the January inflation report and amid concern over further US rate hikes.

The main index dropped 90.77 points or 1.29 percent to close at 6,936.61 with the Services sector leasing the retreat across the board. Volume was a hefty 1.24 billion shares worth P9.9 billion as losers beat gainers 103 to 79 with 51 unchanged.

“Philippine stocks were sold ahead of the January inflation print tomorrow, and investors kept cash with many awaiting the latest economic updates globally,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

Philstocks Financial Assistant Research Manager Claire Alviar said “This Monday, the local bourse droppe following the negative cues in Wall Street last Friday after the US showed a strong jobs report. This made investors worried that the Federal Reserve would hike interest rates further.”

She added that, “At home, investors took some profits while waiting for the country’s inflation report for last month that will be released on Tuesday.