After a few days of small gains, the local stock market fell below the 6,200 level again as recent releases of economic data renewed concern over US interest rates and the health of major economies.

The main index dropped 58.62 points or 0.94 percent to close at 6,183.07 with Conglomerates leading the retreat while the Services counter managed to buck the trend and advance. Volume was still thin at 322 million shares worth P3.85 billion as losers trounced gainers 96 to 62 with 50 unchanged.

“Philippine equities edged lower, weighed by higher Treasury yields and renewed concerns on the Fed's interest rate policy,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “the ISM’s U.S. services index climbed to a six-month high in August, while the price segment ticked up to 58.9 percent. Given the data, the Street thinks that the Fed will likely deliver a hawkish pause at its September FOMC meeting.”

Philstocks Financial Research and Engagement Officer Mikhail Plopenio said, “the local market declined as investors took profits after a 4-day rally. The local bourse joined many of its neighboring peers in a decline caused by the rise in the US’ Treasury yields and concerns over China’s economy following its dismal August foreign trade data with imports and exports dropping.”

“Finally, the market remains without a positive catalyst. The local bourse opened and stayed in the red territory for the whole session,” he noted.

China Bank Capital Corporation Managing Director Juan Paolo Colet said, “the market took a breather after three days of gains, with selling pressure bringing the index back below 6,200.”

“Data from Europe, China, and the US dampened sentiment. The stronger than expected ISM services index for August, which reached 54.4, its highest since February 2023, signaled strong US economic activity and led some investors to scale back expectations of the path of the Federal Reserve’s interest rate cuts next year,” he said.

Colet also noted that, “news of China’s plan to broaden its ban on iPhone use in the government sector dragged US stock indices due to the drop in Apple shares and precipitated worries of escalating economic tensions between the world’s two largest economies.”