The local stock market ended below the 6,400 level despite a strong start as investors sold down shares in late trades.

The main index lost 19.24 points or 0.30 percent to close at 6,390.83 led by the decline of the Mining and Oil sector while Property and Services managed to advance. Volume rose to 290 million shares worth P4.95 billion as losers outnumbered gainers 110 to 73 with 48 unchanged.

Among the index members, Manila Electric Company was at the top, rising 3.01 percent to P376.00 per share. Wilcon Depot Inc. lost the most, dropping 4.59 percent to P17.48 a share.

“Philippine shares continued to tumble as investors digested the latest policy announcement from the Fed and May inflation data, which pointed to easing pricing pressures," said Regina Capital Development Corporation Managing Director Luis Limlingan.

“As expected, the Fed kept interest rates unchanged. However, the Fed's projections showed only one rate cut is anticipated this year, citing still elevated levels of inflation,” he added.

Due to this, Limlingan said gold prices eked out some gains, with spot gold ticking up by 0.3 percent to $2,322.46 per ounce.

Meanwhile, oil prices rose as the US reported a surprising 3.7 million barrel increase in crude oil inventories for last week, against expectations of a 1 million barrel draw.

Philstocks Financial Research and Engagement Officer Mikhail Plopenio said, “the local market dropped as investors sold shares at the last minute resulting in a 3-day decline.“ 

“April’s balance of trade deficit seemed to have weighed on investor sentiment as this poses depreciation risks to the already weakened Philippine peso,” he explained.

Plopenio added that “remarks from President Ferdinand R. Marcos stating that inflation remains as a main concern due to uncontrollable forces, tempered rate cut hopes despite it staying within the government’s target range. The said factors resulted in the bourse closing below the 6,400 support level.”