The local stock market dropped despite news of a lower inflation rate for the month of May as sentiment remains bearish.
The main lost 41.71 points or 0.64 percent to close at 6,479.93 as Conglomerates led the decline while the Property and Mining sectors managed to advance. Volume remained weak at 1.8 billion shares worth P3.88 billion as losers beat gainers 109 to 70 with 49 unchanged.
“It was a sell on news session in the local market with inflation coming in line at 6.1 percent, right within market expectations,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He noted that, “With little impetus locally, movements were mainly influenced regionally by the news that regulators are contemplating increasing capital requirements for large banks.”
Philstocks Financial Research and Engagement Officer Mikhail Plopenio said “This Tuesday, the local market dropped despite the slowdown in the country’s inflation to 6.1 percent in May. Negative cues from Wall Street somehow fueled the drop.”
He added that, “The market heavyweight SM dropped more than 2 percent in Tuesday’s session which also dragged the index down. Many are still on the sidelines while waiting for a catalyst to emerge.”