Share prices closed 0.4 percent lower on Thursday following Wall Street's slide overnight and due to the absence of any major market developments locally.
Dealers said investors have adopted a wait-and-see attitude and continued to stay on sidelines.
The composite index fell 6.72 points to 1,880.38, while the all-shares index shed 0.6 percent to 1,216.60.
There were 34 gainers against 45 losers and 46 issues unchanged.
Turnover was thin at 548.7 million shares worth P998.4 million ($20.7 million).
The peso traded at 48.155 to the dollar.
"We're trading sideways because there is no significant negative news on the market on the domestic front," Jo-anne Parayno of Papa Securities Corp. told AFP.
"The weakness in other blue chips is being offset by the strong technical rebound of Meralco," she said, referring to Manila Electric Co., the country's largest power distributor.
Philippine Long Distance Telephone fell 0.2 percent to P2,165.00 while Bank of the Philippine Islands dropped 2.8 percent to P34.00.
Property giant Ayala Land Inc. edged down P0.10 or 1.8 percent to P5.60.
San Miguel Corp. saw its A shares fall 3.1 percent to P47.00 while its B shares were off 1.04 percent to P47.50.
Bucking the market decline was Manila Electric Co., which closed up P7 or 8.8 percent at P86.50. With AFP