The local stock market began the last trading week of July, losing by 76.78 points, or 1.14 percent, to close at 6,649.23.

Most sectoral indices dropped, with Banking losing the most at 2.56 percent, followed by Mining and Oil down by 1.18 percent, and Property by 0.90 percent.

The Industrial index was the only gainer, up by 14.90 points, or 0.16 percent.

The local bourse fell as investors looking to cash in after July saw a substantial rise in the index, according to Luis Limlingan, head of sales at Regina Capital Development Corp.

“Funds are also gearing up for another economic data-heavy week, with more company earnings coming in as well,” he said in a Viber message.

Meanwhile, Philstocks Financial Inc. Research Analyst Claire T. Alviar attributed the local market loss to a lack of a strong catalyst.

“Foreign investors weighed on the market, recording a net outflow of P500.43 million. Investors were waiting for the Federal Reserve meeting, which could influence the Bangko Sentral ng Pilipinas’ decision regarding interest rates,” she said, adding that the market’s resistance was still pegged at 6,700 to 6,800 levels.

“It seemed the market was struggling to break and stay above this level,” Alviar added.

The net market value turnover stood at P4.68 billion.

One hundred five Decliners outweighed 83 Advancers, while 55 names remained unchanged.

The peso closed at P58.51 from a dollar.

‘Carina’ effect on local economy

The recent onslaught of Typhoon Carina, the third tropical storm that battered the country this year, could drag on the economy or gross domestic product, according to Rizal Commercial Banking Corporation chief economist Michael Ricafort.

Citing massive flooding in Metro Manila and other regions from Tuesday to Thursday, Ricafort said local growth may be affected as business, livelihood, and other economic activities in affected regions were disrupted.

He, however, noted that reparations and rehabilitation from the typhoon would offset damages through the government’s increased spending on infrastructure repair, consumers’ spending, and other institutions to fix the typhoon-affected properties.

“Realistically, there may be some temporary pick up in prices in hard-hit areas until logistics normalize, also in view of some damage on agriculture that could lead to some temporary spike in vegetable, fruit, and other produce prices that could lead to some transitory pick-up in food prices,” Ricafort said, noting that the price freeze would temper these amid the state of calamity declared in some areas.

An increase in OFW remittances and conversion to pesos, and borrowings and loans can also be expected.

“Ironically, these would spur additional business and overall economic activities to offset disruptions and resulting damage at the height of the said floods or typhoon,” he added.