Philippines stocks fell on Thursday, led by telecom issues PLDT and Globe and pulling back from three-year high hit this week on hopes President Gloria Macapagal Arroyo would win in the May polls.
Traders said local sentiment had also been dampened by a steep drop overnight of the Dow Jones industrial average on concerns about a US interest rate rise and heightened tensions in Iraq.
Philippine Long Distance Telephone Co (PLDT), the country's largest telecom firm, shed 1.73 percent or 20 pesos to 1,135 pesos.
Second-ranked Globe Telecom Inc lost five percent or 45 pesos percent to 855 pesos.
Number-three mobile phone firm Pilipino Telephone Corp (Piltel) fell 1.14 percent or two centavos to 1.74 pesos.
"We took a cue from New York. Since the telcos led the market's rally in the past two weeks, they were hit first by investors taking profits," Astro del Castillo, managing director at First Grade Holdings, said.
The main index ended 28.36 points lower or by 1.76 percent at 1,581.95 points. But the market is still up 9.68 percent since the start of the year.
Value turnover dropped to 684.33 million pesos ($12.26 million) from 904.17 million pesos on Wednesday.
Losers swamped gainers 49 to 12 and there were 34 stocks unchanged.
Metropolitan Bank and Trust Co, the country's largest lender, ended unchanged at 25 pesos after it said it expected its net income to grow more than 20 percent in the first quarter from a year earlier.
ABS-CBN Broadcasting Corp, the Philippines' largest media firm, fell 2.94 percent or 75 centavos to 24.75 pesos after announcing it expected its first-quarter net income to have risen about 10 percent.
"Our performance is within our expectations," Chief Financial Officer Randolph Estrellado said on the sidelines of the company's annual stockholders' meeting.
Analysts expect the market to take inspiration from the announcement of first-quarter corporate earnings in the next several days.
PLDT will announce its first-quarter results on May 4. Globe Telecom will on May 5.
Ayala Corp, the country's largest conglomerate, will release its results on May 6.
Del Castillo pegged the initial market support at 1,570 points.
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