The local stock market dropped closer to the 6,500 level as investors worry that recent economic data may lead to less aggressive rate cuts.

The main index fell 61.64 points or 0.94 percent to close at 6,510.87, with the Property and Mining counters leading the retreat. Volume declined to 314 million shares worth P5.27 billion as losers outnumbered gainers 112 to 66 with 51 unchanged.

“Philippine shares logged another losing day on the back of rising yields. The 10-yr Treasury yield topped 4.1 percent during the session,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He explained that, “investors worried that a strong December retail sales report, which suggests a robust consumer, could mean fewer rate cuts from the Fed than many are expecting.”

Philstocks Financial Research and Engagement Officer Mikhail Plopenio said “this Thursday, the local market dropped as investors seemed to have weighed negative factors offshore. Firstly, it tracked losses from Wall Street overnight amid rising US long term treasury yields. The stronger-than-expected US retail sales data, which rose 0.6%, tempered near-term rate cut hopes by the Federal Reserve.”

“Additionally, worries over China’s economy dampened sentiment a day after it reported a dismal GDP growth. Lastly, the tension in the Red Sea is also being monitored by many as disruptions could arise if the situation in the said area escalates,” he noted.