Manila  - Philippine shares dropped 3.42 per cent on Tuesday as investors kept out of the market amid concerns of rising inflation due to skyrocketing prices of fuel and food.

The Philippine Stock Exchange's 30-share composite index shed 93.75 points to close at 2,645.95 down from Friday's close of 2,739.70.

A total of 1.53 billion shares worth 4.25 billion pesos (96.04 million dollars) were traded.

Losers swamped gainers, 95 to 8, with 42 issues unchanged.

Analysts said the sell-off was triggered by concerns inflation could hit double digits in June due to unabated increases in the prices of basic commodities.

Astro Del Castillo, managing director of the First Grade Holdings, said only brave investors will go against the selling tide currently sweeping the local market. (dpa)