Tuesday, June 3, 2008

RP stocks lower on Wall St fall

Stocks fell on Tuesday as investors turned cautious following Wall Street's decline overnight due to more signs of weakness in the US economy, and ahead of a widely anticipated hike in the central bank's interest rates.

A squeeze in US manufacturing activity in May and construction spending in April, along with persistent credit problems, sent the Dow Jones industrial average down 1.06 percent or 134.50 points on Monday.

At home, analysts said investors have been worried that the central bank would raise its key interest rates in a meeting on Thursday, the same day the official data on May inflation would be released.

Four out of five economists polled by ABS-CBN were expecting the Bangko Sentral ng Pilipinas (BSP) to tighten monetary policy by at least a quarter of a percentage point to curb runaway inflation.

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