Philippines share prices closed 2.15 percent lower on Thursday as Wall Street's losses overnight prompted investors to cash in on recent gains, dealers said. The composite index lost 70.99 points to 3,223.22 after moving between 3,217.72 and 3,294.14. The broader all-share index fell 35.21 points to 2,073.05.
There were 94 decliners and 19 advancers, and 42 stocks unchanged. A total of 6.9 billion shares worth 3.6 billion pesos (75 million dollars) changed hands.
"This is the correction that we had been anticipating after the recent run-up, and the Dow's big drop last night was a good excuse to take profits," said Rommel Macapagal of Westlink Global Equities.
Asian stocks were mostly lower early Thursday after the Dow Jones industrials fell nearly 90 points after the minutes of the most recent meeting of the Federal Reserve showed that policymakers discussed the possibility that future increases in US interest rates may be needed to curb inflation. "We're looking at 3,200 points as the next support level for the local market," Macapagal said.
Nestor Aguila of DA Market Securities also said the local market's slide was expected. "Local fundamentals are still looking good and the drop in stock prices is just a minor correction following recent rallies," he said.
Top-traded Philippine Long Distance Telephone, or PLDT fell 85 pesos to 2,425. Ayala Corp edged down 20 to 560. Debutant gaming equipment lessor Pacific Online Systems Corp closed at its day-high of 13.25, well above its initial public offering price of 8.88. San Miguel A and B shares were steady at 65 and 73.50, respectively, ahead of the release of the brewer's fiscal 2006 results later Thursday.