Stocks drop after oil output cut

The local stock market dropped on renewed concern over inflation after oil producers announced a supply reduction.
    The main index lost 57.95 points or 0.89 percent to close at 6,472.54 as Banks led the retreat with only the Property counter in the green. Volume declined further to 2.4 billion shares worth P3.99 billion as losers and gainers were almost matched at 92 to 91 with 60 unchanged.
    “Investors began selling local equities before the 5-day break and right before the inflation release tomorrow,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
    He added that, “Many are wary of the effect of an oil output cut from OPEC+ that threatens to stoke inflation and recession fears.“
    Philstocks Financial Assistant Research Manager Claire Alviar said that, “Although March’s inflation may most likely ease compared to February’s data given the forecast of the BSP, investor sentiment was still dampened by the surprise decision of the OPEC+ to cut oil output, which may lead to an increase in inflationary pressures.”
    She noted that, “The market continued to exhibit weakness, as evidenced by a net value turnover. This subdued performance is expected to persist as investors brace for the upcoming long weekend.”