The stock market fell Monday on cautious trading ahead of the release of the inflation data for May.
The Philippine Stock Exchange declined 50.65 points, or 0.7 percent, to 7,579.61 on a value turnover of P5.5 billion. Losers beat gainers, 113 to 72, with 58 issues unchanged.
Universal Robina Corp., the biggest snack food maker, slumped 6.2 percent to P120.80 on concerns higher consumer prices would crimp sales, while Jollibee Foods Corp., the largest fast-food chain, lost P1.2 percent to P280.40.
The Philippine Statistics Authority will release today the inflation rate figures. The Finance Department said over the weekend inflation rate in May likely accelerated to a new five-year high of 4.9 percent from 4.5 percent in April, driven by higher food prices on supply problems.
SM Investments Corp. of retail tycoon Henry Sy dropped 3 percent to P879, while banking unit BDO Unibank Inc., the biggest lender in terms of assets, shed 2.3 percent to P128.
The rest of Asian markets, however, rallied Monday following a forecast-busting US jobs report that reaffirmed the world’s top economy is improving, while investors were also cheered by the formation of new governments in Italy and Spain.
However, while the week has got off to a positive start, there are lingering worries about a possible global trade war after the US hit Canada, Mexico, and the European Union with steel and aluminum tariffs.
The focus is turning to a Group of Seven summit in Quebec later in the week, where US President Donald Trump is expected to go head-to-head with other world leaders over the levies, while China has warned Washington off imposing any measures against it.
The EU and Canada have filed complaints at the World Trade Organization, while the US Treasury Secretary faced severe criticism at a G7 finance ministers’ gathering at the weekend.
All three main indexes on Wall Street ended sharply higher Friday after data showed the US created more jobs than expected in May, while the unemployment rate is at a near five-decade low. Separate figures showed US factory activity also beat estimates.
The gains in New York filtered through to Asia, where Tokyo ended 1.4 percent higher, while Hong Kong was up 1.7 percent and Shanghai finished 0.5 percent higher.
Sydney rose 0.6 percent, Seoul gained 0.4 percent and Taipei put on 1.5 percent, with Singapore more than one percent higher.
The dollar also built on Friday’s surge against the yen as the strong jobs report also lifted expectations for another interest rate hike by the Federal Reserve next week.
The euro held its gains after Italy’s populist parties agreed to form a government, ending days of uncertainty that had fueled fears of another election that would essentially be considered a referendum on its euro future.
A change of government in Spain also provided some support to the single currency, with the unpopular and corruption-plagued Mariano Rajoy replaced by Socialist Pedro Sanchez.
