Philippines share prices closed 1.91 percent down on Wednesday, with the key index hitting its lowest level in two weeks as investors took profits ahead of the US Federal Reserve's meeting on interest rates, dealers said.
The composite index ended down 69.91 points at 3,587.21. It moved between 3,578.31 and 3,655.60. Volume traded reached 7.27 billion shares worth 5.56 billion pesos (120 million dollars).
There were 139 decliners and 14 advancers, while 23 stocks were unchanged. The US central bank is widely expected to keep its benchmark Fed funds rate steady at 5.25 percent, but it is the Fed's accompanying statement on inflation and the health of the US economy that financial markets are keenly awaiting.
Astro del Castillo of First Grade Holdings said the retreat reflects the fact that the Philippine market "remains sensitive to developments in the US." "But it's also a healthy breather for us after the recent sharp run-up," he added.
He said market appetite was also dented by concerns about the Philippine government's fiscal performance after it missed its tax collection target for the first five months of the year.
At a news briefing Wednesday, Philippine Finance Secretary Margarito Teves said the government remains committed to a balanced budget by 2008 despite the poor tax collection performance in the five months to May. Del Castillo sees the next support level for the main index at 3,550 points.
Ayala Land, the most actively traded stock, was down 50 centavos at 17.50 pesos. Shares in Ayala Land's parent, Ayala Corp, retreated 10 pesos to 545. Philippine Long Distance Telephone or PLDT, the biggest listed Philippine company in terms of market capitalisation, fell 50 to 2,620. San Miguel A fell three to 72 while San Miguel B ended a peso lower at 80.