Stocks fall due to higher inflation rate

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The local stock market fell after the government announced a higher-than-expected rise in the consumer price index.

The main index lost 77.61 points or 1.2 percent to close at 6,405.50 with the Property sector leading the decline across the board. Volume jumped to 712 million shares worth P12.71 billion as losers beat gainers 108 to 68 with 49 unchanged.“Philippine shares traded on higher than average volume as index funds rebalanced their position to reflect the new constituents; mainly the entry of SCC over SECB,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “July CPI edged higher but showed some signs of deceleration compared to the previous month, with the latest print at 6.4 percent. “ “Also, the market is awaiting for tonight’s jobs report for further clues about the Fed’s path of rate hikes and the state of the economy. Economists expect 258,000 jobs were added in July, down from 372,000 in June, according to Dow Jones. Unemployment is expected to hold steady at 3.6 percent,” Limlingan added.

 

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