MANILA, Philippines — Local shares closed lower on profit-taking Wednesday following the market's recent rally to a new record high.

The bellwether Philippine Stock Exchange (PSEi) closed 40.86 points or 0.9% at 4,398.75 points in heavy volume.

"Sellers took the latest inflation data as a reason to take profit," said Lawrence de Leon, a trader with Accord Capital Equities, referring to the 4.6% inflation number for June, the highest level in more than two years.

De Leon said profit-taking may continue today. Most active stocks include San Miguel, up 1.6% at P125, Petron Corp., up 6.2% at P15.86; Metropolitan Bank, off 1.0% at P70.90. (Dow Jones)