They said there were some fresh political concerns as the Senate began a new inquiry into allegations that President Arroyo cheated in last year’s polls and this may have dampened sentiment again.
Investors also sold shares to lock in profits after recent gains, with rising oil prices and interest rates setting a cautious mood in the market.
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 P1.36 billion. The broader all-shares index retreated 4.79 points to 1,198.81.
Losers led gainers 36 to 16, with 60 stocks unchanged.
The peso was at 56.26 to the dollar.
"The market is taking a breather. There’s no news to push it up," said Mark Alan Canizares of Citiseconline.com.
"The market remains volatile given economic and political uncertainties. Oil prices continue to pose a risk to economic growth while political worries have always been there," Canizares said.
The prospects of higher interest rates has undercut sentiment too.
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. (PLDT) closed up P10 at P1,690, still buoyed by hopes of brisk third-quarter earnings.
‘A’ shares of San Miguel Corp., exclusive to local investors, closed unchanged at P66 while San Miguel B, open to foreign investors, was steady at P94.
"Some investors are still bullish on select issues, but cautious on the market in general," said AB Capital Securities research director Jose Vistan, blaming the mood on high oil prices and the rising trend in interest rates.
Mall operator SM Prime was likewise among the most actively traded stocks, falling 2.6 percent to P7.50, possibly on the bleak outlook for the retail sector in the coming months.
Teresita Sy-Coson, president of Shoemart Inc., the country’s leading department store operator and an affiliate of SM Prime, cited the adverse impact on operating costs from the implementation of the expanded value-added tax, high oil and electricity prices, and the recent political crisis.
The bleak outlook for the retail sector also may have weighed on Ayala Land, which fell 1.2 percent to P8.10. Ayala Land’s retail operations are a major revenue source of the country’s largest property group. – AFP, AP