They said the focus remained on mining, commodities and oil exploration related stocks given the recent bullish performance those markets.
The composite index fell 32.59 points to 2,518.20. It moved between 2,511.96 and 2,555.98 on volume of 3.28 billion shares valued at P2.82 billion. Decliners outnumbered gainers 61 to 47, while 46 stocks were unchanged.
The broader all-shares index fell 15.81 points to 1,560.19.
"Sellers have gotten into the picture," said Lawrence de Leon of Accord Capital Equities Inc.
"Apart from the fact that the market is due for a correction following recent sharp gains, the hike in US interest rates also served as a dampener. There are concerns that our central bank may eventually follow suit."
The Federal Reserve lifted key short-term rates for the 16th consecutive time Wednesday and issued a statement that left investors unsure about their outlook for US interest rates and inflation.
A day after the rate hike, US stocks ended lower last night, logging their biggest one-day decline since January, on concerns that rising commodity prices will translate into higher inflation and will prompt the Fed into raising interest rates again in June.
"The market may consolidate next week, although sharp swings will likely be evident. There could still be investors that would be wanting to buy up the market, but they may be met by those who prefer to take profits," Accord’s De Leon said.
Online brokerage firm 2TradeAsia.com said blue chips succumbed to profit-taking as investors switched part of their funds in other shares that could help maximize short-term returns.
Losses in Globe Telecom Inc. weighed on the main index. It closed down P35 at P1,030.
Top-traded Philippine Long Distance Telephone Co. retreated P10 to P2,135, extending losses after the release of its disappointing first-quarter earnings Tuesday.
Mining shares continued their rally after gold futures rose to another multi-decade high, while prices of other metals hit new records in US trading overnight.
Second most active Atlas Consolidated Mining Co. advanced P1.10 to P9.30.
Petron Corp. ended 10 centavos down at P4.85. The oil refiner said that its first-quarter net profit rose 16 percent from a year earlier to P1.01 billion on increased exports.
Ayala Land Inc. and parent Ayala Corp. fell ahead of their results announcements Friday. Ayala Land eased 25 centavos to P14.25, while Ayala Corp. shed P10 to P447.50. – AFP