Investors locked in recent gains in blue-chips in the absence of fresh leads, dealers said.
The composite index fell 28.12 points at 2,849.71 after moving between 2,845.26 and 2,886.09.
The broader all-share index fell 12.64 points to 1,782.92.
Market breadth was negative with 92 losers and 42 gainers, while 41 stocks were unchanged. Volume was 2.8 billion shares worth P4.27 billion.
"We saw a slowdown as there was no strong buying appetite, especially since the Christmas holidays are just a few days away," said Lawrence de Leon of Accord Capital Equities Inc.
"Investors were also hesitant to buy stocks because they did not see any major news that could really kick up a rally," he said.
"The slowdown is temporary. Moving forward, the overall market sentiment is still very positive and a recovery is still in the offing as we get to the year’s end," he added.
Aside from Christmas Day next Monday, Manila’s financial markets are also shut on Dec. 26. Trading resumes on Dec. 27.
Top-traded Philippine Long Distance Telephone Co. (PLDT) fell P45 to P2,390.
Property developer Mega-world Corp. was down two centavos at P2.26.
Geothermal power producer PNOC-Energy Development Corp., which debuted strongly last week, dropped 10 centavos to P4.45, still well above its initial public offering price of P3.20.
Power distributor Manila Electric Co.’s A-shares, limited to Filipinos, advanced 50 centavos to P54.50 while its B-shares rose 50 centavos to P55.
San Miguel Corp.’s A-shares added 50 centavos to P66.50 while its B-shares were steady at P72.
The Thai central bank said yesterday that foreign investors buying baht from today will be allowed to invest only 70 percent of the amount purchased and will be able to recover all their funds only if the money is kept in Thailand for more than a year.
"This will affect the flow of funds," Erick Tan, who helps manage about $4.7 billion at Bank of the Philippine Islands in Manila. "Investors prefer flexibility and don’t like their moves restricted."
Ayala Land fell 25 centavos, or 1.6 percent, to P15, snapping a three-day climb. SM Prime Holdings Corp., the country’s largest shopping mall operator, lost 25 centavos, or 2.4 percent, to P10, its biggest decline since Nov. 21.
Meralco announced earlier that it will pay P1 a share in dividends on Feb. 5. The company said it will also pay a 10-percent stock dividend. Meralco last paid a cash dividend in March 2000 and a stock dividend in June 2000. — AFP