Stocks drop on rate cut concerns


The local stock market continued to decline as foreign investors sell out amid  on belief that US rate cuts will be delayed.

The main index dropped 48.29 points or 0.73 percent to close at 6,571.60 as the Mining and Oil sector led the retreat while the Industrial counter bucked the trend. A total of 3.42 billion shares worth P4.19 billion changed hands as losers beat gainers 104 to 84 with 45 unchanged.

“Philippine shares got off to a weak start as the US closes the month of May on a shortened holiday, while concerns that the Fed might postpone an interest rate cut continue to linger,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse dropped amid a lack of fresh catalysts. Investors were awaiting data that could influence the decision of the Bangko Sentral ng Pilipinas regarding interest rates.”

She added that, “Foreign investors weighed on the market, registering a net outflow of P487.62 million.”