The local stock market ended lower on late profit-taking after a strong opening that sent the Philippine Stock Exchange Index (PSEi) above the 7,000 level.

The main index lost 19.38 points or 0.28 percent to close at 6,960.43 led by losses of Banks although sectoral indices were evenly split. Volume was higher at 715 million shares worth P6.53 billion as losers outnumbered gainers 105 to 88 with 45 unchanged.

“Philippine shares were sold down as investors weighed in on inflation data amid fears of a market slowdown,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

Philstocks Financial Research and Engagement Officer Mikhail Plopenio said, “This Tuesday, the local market dropped due to last-minute profit-taking. Investors seemed to have priced in the likelihood that March inflation has accelerated and possibly even exceeded the government’s target range of 2 percent to 4 percent. This comes after the Bangko Sentral ng Pilipinas projected inflation to settle within 3.4 percent to 4.2 percent.”

“Adding to the woes was the slowdown of the local manufacturing sector’s expansion for March as seen in the S&P Global Philippines Manufacturing PMI reading of 50.9, slower than February’s 51,” he noted.

Plopenio also said that "the bourse started the session strong as it opened above the 7000 resistance level and was in the green territory for most of the day. It even reached as high as 7070.72. However, the market still closed below the 7,000 level implying that it is not yet prepared to take the said resistance line.”