The local stock market dropped after the government reported an uptick in the inflation rate last month.
The main index fell 79.79 points, or 1.20 percent, to close at 6,545.38. The Services sector led the retreat, with only Mining and Oil in the green. Volume was higher but still thin at 1.51 billion shares, worth P4.51 billion, as losers outnumbered gainers 124 to 96, with 39 unchanged.
“Philippine shares succumbed to profit-taking following the release of the local December CPI, which came in slightly higher than street estimates," said Regina Capital Development Corporation Managing Director Luis Limlingan. "Sentiment was also pulled down by the tepid performance of the US.”
Wall Street closed mixed Monday, with the S&P 500 and Nasdaq gaining for a second day as chipmakers surged, while the Dow Jones Industrial Average lagged.
Limlingan added that, “Price-action movement improved on reports that President-elect Trump’s tariffs may target only critical imports, easing fears of broader trade disruptions.”
Philstocks Financial Research Manager Japhet Tantiangco said "The local market fell this Tuesday as investors took profits after a three-day rally."
He noted that, "Investors also digested the December 2024 inflation figure of 2.9 percent, faster than the preceding month’s 2.5 percent. This was also biased towards the upper end of the BSP’s 2.3 percent to 3.1 percent range forecast."
"Foreign transactions posted net outflows amounting to P894.32 million, adding to the decline," Tantiangco said.