Philippines stocks closed lower for the third straight session on Monday as further profit-taking eroded recent gains in telecom stocks such as PLDT after the market hit its highest in nearly three years last week.
Philippine Long Distance Telephone Company (PLDT), the country's largest telecommunications firm, dipped five pesos to 940 pesos.
Pilipino Telephone Corp (Piltel), which hit its highest since 1999 last week on speculation it would merge with larger affiliate Smart Communications Inc, fell 6.10 percent or 10 centavos to 1.54 pesos.
"We expected the market to dip further on a technical correction since there is no major positive news," said AB Capital analyst Jose Vistan.
"There are worries on a sovereign debt rating downgrade from Moody's, the peso is faltering again, and political uncertainties are there. The old news are haunting the market."
The peso touched a fresh two-month low of 55.79 to the dollar on Monday on persistent political concerns ahead of May elections and ahead of a widely expected downgrade of the country's debt rating by Moody's Investor Service.
The main index finished 12.32 points or 0.79 percent lower at 1,547.70 points.
Value turnover rose to 789.87 million pesos from Friday's 499.63 million pesos.
In the broader market, losers beat gainers 47 to 16 and there were 31 stocks unchanged.
"I still believe the bullish sentiment is still there," said Vistan, who saw the market's next resistance at 1,580 points.
"There's just a lack of positive news right now.
But as the index moves nearer the support level of 1,540, we expect bargain-hunting to come in and lift the market."
Ayala Land Inc, the country's largest property developer, dropped 1.59 percent or 10 centavos to 6.20 pesos.
B-shares in power distributor Manila Electric Company (Meralco), which are open to foreigners, fell 2.86 percent or one peso to 34 pesos.