The local stock market weakened after the government reported that the inflation rate rose again in April.
The main index shed 33.91 points or 0.51 percent to close at 6,618.58 with sectoral indices evenly divided. Volume jumped to 7.9 billion shares worth P11.5 billion as losers beat gainers 98 to 86 with 54 unchanged.
“The PSEi tumbled as inflation reading in April inched up to 3.8 percent driven largely by the higher prices for food and non-alcoholic beverages due to the increased cost of vegetables,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
This is despite US equities rising for the third straight day following the weaker-than-expected NFP data coupled with higher unemployment, fueling assumptions that the Fed might need to cut rates soon with the overheating economy.
Philstocks Financial Research and Engagement Officer Mikhail Plopenio said that, “This Tuesday, the local market dropped as investors exercised caution amid the continuous climb of inflation at home… the third consecutive climb since February.”
“Investors also traded cautiously while waiting for the Philippines’ first quarter GDP data set to be released later this week,” he added.