Stocks drop due to high US inflation rate

The local stock market continued to decline after news of a high US inflation rate sent share prices tumbling.

The main index dropped 63.03 points or 0.97 percent to close at 6,467.01 with the Mining and Oil index leading the retreat across the board. Volume remained thin at 761 million shares worth P5.38 billion as losers trounced gainers 146 to 43 with 39 unchanged.

“Philippine shares slid once again after a highly anticipated US CPI report showed a faster-than-expected rise in prices and consumer sentiment hit a record low,” said Regina Capital Development Corporation Managing Director Lui Limlingan.

He noted that, “For this week, traders appeared to be preparing for a more aggressive Fed responses in the surge in prices. The central bank is expected to announce at least a half-point rate hike on its meeting this coming Jun 15.”

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local bourse extended its decline after the US’ May inflation print raised worries over the possibility of more aggressive monetary policy actions by the Federal Reserve, which in turn dampened market sentiment.”

He added that, “The further depreciation of the Peso below the 53.00 per USD level also added to the decline.”

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