PSEi falls 1.2% due to profit-taking, high inflation

Local shares declined on Tuesday after a three-day rally, with the Philippine Stock Exchange index (PSEi) closing 1.20 percent lower at 6,545.38.

Philstock Financials research manager Japhet Tantiangco attributed the decline to profit-taking and higher-than-expected December inflation of 2.9 percent, noting that investors also digested the latest consumer price index data.

The Mining and Oil sector was the only one to close in positive territory, gaining by 0.30 percent.

Among the sectors that saw losses were Services (down 1.87%), Property (down 1.67%), Financials (down 0.80%), Industrial (down 0.62%), and Holding Firms (down 0.50%).

Trade volume increased to PHP4.51 billion on Tuesday compared to PHP3.86 billion on Monday.

Net foreign selling stood at P894.32 million on Tuesday, reversing from the net buying of P40.94 million recorded on Monday.