The local stock market fell to a one-year low as investors exercise caution before the release of US inflation data. 

The main index plunged 81.02 points or 1.30 percent to close at 6,149.18 as Conglomerates registered the biggest drop while the Mining and Oil sector stayed in the green. Volume improved to 741 million shares worth P4.73 billion as losers outnumbered gainers 100 to 70 with 47 unchanged. 

“The market fell to its lowest close since October 2022 triggered by heightened investor caution ahead of the US August inflation print as well as worries about rising oil prices,” said China Bank Capital Corporation Managing Director Juan Paolo Colet.

He added that, “everyone’s attention will be on the US consumer price index report, and the data will determine whether our market rebounds or continues its descent in the coming days.”

“Economists are estimating a 3.6 percent year-on-year rise in inflation, according to Dow Jones,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “traders back home continued to secure previous gains as everyone's focus got locked in on the upcoming U.S. CPI data.”

Philstocks Financial Assistant Research Manager Claire Alviar said, “PSEi slipped, mirroring the trend seen in many other Asian markets, as investors booked some gains ahead of the release of the US inflation rate. This crucial data is anticipated to affect the decision of the Federal Reserve on interest rates at their upcoming meeting this month.”

“Moreover, net foreign selling weighed further on the market, posting at P436.54 million. Notably, foreign investors have consistently been net sellers for the past 17 days, accumulating nearly P15.90 billion in total,” she said.