The main-share Philippine Stock Exchange index closed 44.70 points or 0.62 percent weaker at 7,170.65, wiping out gains after a strong opening.
Early in the session, the index hit a new record high of 7,284.34, tracking upbeat trading Wall Street. The recent upgrade of Philippine sovereign credit to investment grade by Standard & Poor’s, the second global credit watchdog to do so, also contributed to the early rally alongside expectations of further cuts in the special deposit accounts (SDAs) by the Bangko Sentral ng Pilipinas.
It was reported on Monday that BSP Governor Amando Tetangco Jr. could not rule out further cuts in the SDAs after the 150-basis point cut already sanctioned so far this year.
Dealers said the market had digested most of the good news, particularly the S&P rating upgrade, and needed to pause for a correction.
All counters ended in the red. There were 78 advancers which were outnumbered by 95 decliners while 48 stocks were unchanged. Value turnover stood at P8.77 billion.