Philippines stocks ended a shade lower on Thursday as investors cashed in recent gains in mobile phone firm Piltel and power distributor Manila Electric Co (Meralco).
Analysts said the market, which hit its highest mark in nearly three years on Wednesday, needed a respite before resuming its climb.
Pilipino Telephone Corp (Piltel), 45-percent owned by dominant telecoms group Philippine Long Distance Telephone Co (PLDT), fell 14.43 percent or 28 centavos to 1.66 pesos after rising nearly 39 percent for the previous two sessions.
Analysts said players were betting on a merger between Piltel, the third-biggest mobile firm, and market leader Smart Communications Inc Smart, which is fully owned by PLDT, must list its shares by August as part of its franchise agreement.
PLDT ended unchanged at 935 pesos.
"The market can't go up in a straight line. We expect the market to recover soon given bullish hopes for the year," said AB Capital economic analyst Jose Vistan.
"Investors view the post-election period as a fresh start for the government, regardless who wins the election."
Filipinos go to the polls on May 10 to vote for a president and 17,000 other national, regional and local officials.
The main index ended 0.02 percent or 0.39 points lower at 1,560.43 points after four straight days of gains.
Turnover dipped to 820.96 million pesos ($14.7 million) from Wednesday's heavy 1.407 billion pesos. Losers beat gainers 37 to 35 and there were 44 stocks unchanged.
Vistan saw the index moving between 1,540 and 1,580 points.
"We expect rotational buying in second-liners to temper the market's decline.
Barring negative political developments, the market will move sideways with a positive bias," he said.
Meralco's B-shares, open to foreign investors, fell 2.82 percent or one peso to 34.50 pesos.
They rose nearly six percent on Wednesday after creditors extended the deadline for the utility to pay $88 million in short-term debt until March.
Meralco's A-shares, restricted to Filipinos, lost 1.19 percent or 25 centavos to 20.75 pesos.
First Philippine Holdings Inc, Meralco's parent, fell 3.77 percent or one peso to 25.50 pesos.