MANILA (AFP) - Philippine share prices closed 2.8 percent lower Monday for the weakest finish in more than three months as investors took their cue from the latest steep fall on Wall Street, dealers said.
The composite index lost 95.25 points to 3,256.99, off a low of 3,242.23. It was the lowest close since April 20, when it settled at 3,254.76.
The all-share index declined 63.79 points to 2,086.39.
Declines led gains 103 to 19, with 43 unchanged.
Turnover was 5.5 billion shares worth 5.2 billion pesos (113.78 million dollars).
Investors had stayed away because of uncertainty about the US sub-prime home loan market, said Jose Vistan of AB Capital Securities.
"Investors are in the dark about the magnitude of the US housing loans concerns. If you do not know what you are up against, it's better to sell and take time to assess the situation," he added.
Ron Rodrigo of Unicapital Securities said: "Investors were clearly jittery. It seems their views have turned from being optimistic to realistic."
Rodrigo said apart from the weakness in stockmarkets globally, domestic concerns were discouraging investors. These include the government's difficulty in increasing its tax collections to allow it to keep the 2007 budget deficit within the target ceiling.
"The market is looking to the US market for positive leads and it appears that they may not be forthcoming anytime soon," said Gomer Tan of Regina Capital Development Corp.
Only after the market begins to consolidate in earnest would investors start looking at the fundamentals again, Tan said.
The day's biggest decliners included shopping mall operator SM Prime Holdings, which lost 1.25 pesos to 10.50. Shares in its parent SM Investments Corp. gave up 27.50 pesos to 350.
Ayala Corp. fell 22.50 pesos to 475, with its property arm, Ayala Land, slipping 75 centavos to 14.25 pesos.
Philippine Long Distance Telephone shed 15 pesos to 2,610.
San Miguel A ended a peso lower at 66 while its B shares gave up two pesos to 67.