Philippines share prices closed 0.42 percent lower on Wednesday on profit-taking after the market rose to a six-week high Tuesday, dealers said.
They said there were some fresh political concerns as the Senate began a new inquiry into allegations that President Gloria Arroyo cheated in last year's polls and this may have dampened sentiment again.
The Philippine Stock Exchange composite index shed 8.39 points to 1,976.10 after trading between 1,970.07 and 1,987.89. Volume was 288 million shares worth 1.36 billion pesos (24.28 million dollars). The broader all-shares index retreated 4.79 points to 1,198.81.
Losers led gainers 36 to 16, with 60 stocks unchanged.
The Philippine peso was at 56.26 to the dollar.
The central bank last week raised interest rates by a quarter percentage point, its second rate hike this year, to curb rising inflation. Analysts expect another 25 basis point increase before the year ends.
Most actively traded Philippine Long Distance Telephone Co closed up 10.00 pesos at 1,690, still buoyed by hopes of brisk third-quarter earnings. Ayala Land fell 10 centavos to 8.10 pesos while parent Ayala Corp retreated 2.50 pesos to 295 pesos. Globe Telecom fell 10 pesos to 760. A shares of San Miguel Corp, exclusive to local investors, closed unchanged at 66.00 pesos while San Miguel B, open to foreign investors, was steady at 94.00 pesos.