Philippines share prices closed 0.55 percent lower on Monday on profit-taking after recent gains took the benchmark index to its highest level in nearly seven years, dealers said.
However, they said the light volumes suggest investors were just taking a breather and may buy back into the market after a brief technical correction.
The composite index fell 12.18 points at 2,195.95 after trading between 2,188.34 and 2,208.13. Volume was 942.5 million shares worth 846.5 million pesos (16.59 million dollars). Losers led gainers 61 to 31, with 50 stocks unchanged.
The all-shares index fell 5.01 points to 1,056.46.
The peso was at 51.19 to the dollar in midday trade.
"A number of stocks were already trading near overbought levels and investors took this as a cue to take profits," said Nestor Aguila of DA Market Securities.
"This very healthy correction may extend for one or two more days after which people are expected to buy back into the market," he said.
Sentiment remains positive given the lull in political tensions and upbeat economic and corporate prospects, Aguila said.
However, they also see caution ahead of the US Federal Reserve meeting Tuesday when another quarter point hike in interest rates to 4.75 percent is expected. The key issue will be any hint on the prospect for more increases.
Philippine Long Distance Telephone, the most actively traded stock, ended steady at 1,880 pesos.
Conglomerate Ayala Corp was down 2.50 pesos at 362.50 pesos while unit Bank of the Philippine Islands fell 1.00 peso to 62.50 pesos. Empire East Land Holdings Inc, which will become part of the key index starting April 3, advanced four centavos to 69 centavos.
Food and beverage firm San Miguel Corp's A shares were steady at 60.50 pesos but its B shares rose 50 centavos to 82.00 pesos.
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