The Philippine benchmark stock index is on track for a technical correction, after a tax plan on food products and a probe into the nation’s top budget airline helped send the market down for a fourth day.

The Philippine Stock Exchange Index dropped as much as 0.8% to 6,374.07, or more than 10% down from a January peak, a move that would define a technical correction. The gauge is heading for a 1% loss this month, already Southeast Asia’s second-worst performer behind Thailand’s.

The local market has been under pressure this year, plagued by high inflation and aggressive monetary tightening by the Philippine central bank. That’s further weakened investor sentiment just as the Federal Reserve’s own interest rate hikes have caused fund outflows from Philippine equities.

The benchmark could fall to as low as 6,200 in the third quarter as elevated interest rates and inflation slows economic growth, said Fritz Ocampo, chief investment officer at BDO Unibank, the nation’s biggest money manager. A rally to 7,200 could happen in the fourth quarter should inflation fall below 4% and the Philippine central bank cut rates, he added.

Philippine Snacks, Sweetened Beverage Makers Fall on Tax Plan

Universal Robina Corp. and Monde Nissin Corp., the country’s two major food producers, led Thursday’s losses after the government said it is pursuing plans to tax junk food and hike levies on sweetened beverages to boost revenue and improve citizens’ health.

Weaker Philippine Inflation, GDP Growth Boost 4Q Rate Cut: BDO

Universal Robina, the nation’s largest maker of snacks and bottler of iced tea, slumped as much as 6% while top instant noodle producer Monde Nissin plunged 8.4%.

Cebu Air Inc., the Philippines’ biggest budget carrier, fell as much as 2.3% amid a Senate probe into possible violations due to its flight cancellations and delays.