MANILA (AFP) - Philippine share prices closed 0.8 percent lower on Wednesday as the market consolidated after posting the biggest single-day gain in seven years on Tuesday, dealers said.
Investors, while still wary about the credit crisis, saw an opportunity on Tuesday to make short-term profits," they said.
The composite index lost 28.06 points to settle at 3,139.46 off the day's low of 3,124.79.
The broader all-share index shed 6.76 points to 2,009.40 points.
Out of 148 stocks traded, 51 declined, 47 advanced, while 50 ended flat.
Volume totalled 1.6 billion shares worth 3.7 billion pesos (78.9 million dollars).
"Caution still prevailed as the market continues to be shaky. The fear among investors remains but to a lesser degree," said Lawrence de Leon of Accord Capital Equities.
De Leon said that after the wild price swings in the last two weeks, the market is now looking for a more stable base.
"It hasn't found it yet, so we can expect more volatility in the days ahead. You will find a mix of bargain hunters and those that have been squeezed or have losing positions."
Some investors have begun assessing stock valuations and were setting aside worries about credit markets, said Jasper Jimenez of BDO Securities Corp.
"The price valuations are good so some investors are already taking a gamble, keeping in mind that the fundamentals of most index issues have not changed since the market hit its record high more than a month ago," he said.
Shares of San Miguel Corp fell after after Moody's Investor Service downgraded its local currency corporate family rating on the food and beverage conglomerate to 'Ba2' from 'Ba1'.
"The downgrade reflects the uncertainties surrounding San Miguel Corp.'s business and financial risk profiles, given its planned ventures into non-traditional businesses, asset disposals, and the nature of various funding plans now under consideration," Moody's said.
San Miguel's A-shares, restricted to Filipinos, shed 50 centavos to close at 61 pesos. Its B-shares, open to foreign buyers, declined two pesos to 61.50 pesos.
Conglomerate Ayala Corp lost 10 pesos to 455 and its property subsidiary, Ayala Land Inc, dipped 50 centavos to 13.50 pesos.
Shares in the country's largest mall operator, SM Prime Holdings Inc, retreated 50 centavos to 10.25 pesos.
Market leader Philippine Long Distance Telephone Co slipped five pesos to 2,515.