The local stock market fell as investors believe the Bangko Sentral ng Pilipinas will still not slash interest rates in the third quarter.
The main index dropped 70.26 points or 1.07 percent to close at 6,591.34 as the interest rate sensitive Property sector led the retreat while Banks and Miners advanced. Volume increased to 583 million shares worth P5.27 billion as losers outpaced gainers 102 to 93 with 35 unchanged.
“Philippine shares hit the 6500 support level as US investors resume trading, and will be anticipating key economic data later this week,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Investors are particularly focused on consumer confidence data due on Tuesday and the April personal income and expenditures report, which includes the PCE inflation reading, expected on Friday,” Philstocks Financial Research and Engagement Officer Mikhail Plopenio said.
This Tuesday, he said, the local market dropped as investors digested the latest clues on the BSP’s monetary policy outlook. Primarily, investors digested the results of the BSP’s latest survey which showed that the majority of respondent analysts project policy rates to remain unchanged in Q3 2024.
“Also digested was BSP Senior Assistant Governor Iluminada Sicat’s remarks, saying that upside risks to inflation remain, causing the BSP to remain restrictive with its policy,” he noted.