The Philippine Stock Exchange index was down 101.01 points to 7,102.66, a 1.4 percent drop.
The broader all shares index was down 32.92 points to 4,253.13, a 0.77 percent drop.
Gainers edged losers 123 to 117 with 27 stocks unchanged. Trading turnover reached P9.88 billion.
The peso closed at 48.08 to the dollar, up from 48.08 on Monday. It opened at 48.12 and hit a high of 48.05 and a low of 48.125. Trading turnover reached $505.8 million.
Claire Alviar, analyst at Philstocks Financial Inc., said investors took to profit-taking following the market’s testing of the 7,200 resistance level.
Foreign funds were net sellers of P685.74 million.
“At the 7,200 level, PSEi’s P/E ratio is already at 21x which is overvalued compared with its historical average of around 18x so traders took profits already after yesterday’s break,” Alviar said.
“In addition, World Bank’s revised forecast of the Philippines’ GDP contraction this year from 6.9 percent to 8.1 percent dragged sentiment,” she said.
Most actively traded Metropolitan Bank and Trust Co. was down P0.75 to P51. Dito CME Holdings Corp. was down P0.36 to P7.25. Ayala Land Inc. was down P1.10 to P38.70. BDO Unibank Inc. was down P2.50 to P107. Metro Pacific Investments Corp. was down P0.16 to P4.39. Bank of the Philippine Islands was up P0.90 to P83.90. Ayala Corp. was down P40 to P820. SM Investments Corp. was down P11 to P1,039. SM Prime Holdings Inc. was down P0.80 to P37.90. International Container Terminal Services Inc. was down P6.60 to P119.40.