Philippine shares ended at a 3-week low on Thursday, hit by profit-taking on the back of a lack of direction in US and regional markets and renewed worries over rising oil prices.
However traders said bargain hunting might emerge soon after the main index breached initial support at around 1,550.
The Philippine stock index lost 15.36 points or 0.98 percent to end at 1,549.98 points. The index has lost 3 percent in the last 5 sessions.
"The market is looking for direction," said Allan Araullo, vice president at Regina Capital Development Corp.
"The US market and the region do not have direction, so the punters are playing."
The Dow Jones and Asian markets were pulled down by losses in tech shares.
Jose Vistan, an analyst at AB Capital Securities Inc, said the increase in global oil prices to over $41 per barrel had renewed concerns over inflation.
The Philippines imports most of its crude oil requirements and local oil firms pass on higher crude costs to consumers.
Turnover in the local market narrowed to 592 million pesos ($10.6 million) from 673.65 million pesos on Wednesday. Losers outpaced gainers, 42 to 28, with 44 issues unchanged.
Pilipino Telephone Corp, a unit of dominant telco Philippine Long Distance Telephone Co, fell 14 centavos or 5.88 percent to 2.24 pesos. Market players took profit after the stock jumped nearly 24 percent in four sessions.
"The play is in Piltel, because of Smart's buy-in and it's a turnaround story," Araullo said, referring to the plan of its sister firm Smart Communications Inc to acquire a 92 percent stake in Piltel.
Piltel also recorded a net profit of 8.0 million pesos in the first quarter, its first time in the black after suffering from heavy losses since 1997.
PLDT also slid 15 pesos or 1.24 percent to 1,190 pesos. Its rival Globe Telecom also fell 15 pesos or 1.84 percent to 800 pesos.