Philippines share prices closed 1.5 percent lower on Tuesday as a technical correction went into a third day following the market's recent five-year highs, dealers said. They welcomed the correction which brought the composite index below the 2,000-points psychological support level as a much needed measure to cool rapid gains which have recently taken shares to overbought levels. The Philippine Stock Exchange composite index fell 30.39 points to the day's low of 1,992.27, also the lowest level in three weeks. The index hit a high of 2,034.68.

Volume reached 5.96 billion shares worth 1.5 billion pesos (27.2 million dollars) from Monday's 7.78 billion shares worth 1.74 billion pesos.

The broader all-shares index fell 6.72 points to 1,197.33. Losers beat gainers 97 to 27, with 35 stocks unchanged.

Dealers said investors had cashed in on recent gains ahead of the launch of initial public offerings for SM Investments Corp and Manila Water Co Inc expected in March. "We were having a rebound until mid-trade but when the key index fell below another support level (at 2,020), investors panicked," Rommel Macapagal of Westlink Global Equities, said.

The market's next support level was at 1,970 points, dealers said.

Benpres Holdings, the most actively traded stock, closed up four centavos at 1.30 pesos, giving back some early gains after it said it was in discussions with various parties over the sale of a substantial stake in Manila North Tollways Corp.

Benpres affiliate First Philippine Holdings was up 2.50 pesos at 52.50 pesos. Philippine Long Distance Telephone Co was up five pesos at 1,360 pesos. Ayala Land Inc fell 50.00 centavos to 8.70 pesos and parent Ayala Corp retreated 40.00 centavos to 7.30 pesos. A and B shares of San Miguel Corp fell 50.00 centavos to finish at 57.00 pesos and 80.00 pesos, respectively.

Copyright Agence France-Presse, 2005