Stocks dip prior to US CPI report

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The local stock market dipped while investors wait for the US inflation rate to be announced.

The main index shed 13.94 points or 0.21 percent to close at 6,701.81 as the Property sector led the retreat while Banks and Conglomerates inched up. Volume improved to 706 million shares worth P5.52 billion as losers beat gainers 107 to 71 with 44 unchanged.“Philippine shares settled slightly lower ahead of the important US CPI data which will be out ahead of the Fed’s Sep meeting,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “A weaker dollar and military success in Ukraine may also support stocks the rest of the week.“ Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse declined as investors booked some gains after the three consecutive days of the market’s rally. Also, investors stayed on the sidelines while waiting for the inflation rate in the US.”

She explained that, “Most investors are waiting for the US inflation data as this may influence the decision of the Federal Reserve regarding interest rates which may eventually affect the decision of the Bangko Sentral ng Pilipinas in their upcoming meeting this month.” “The plunge of the Philippines’ FDI net inflows this June by 51.5 percent year-on-year also weighed on investor sentiment,” Alviar added.

 

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