MANILA, July 8, 2009 (AFP) - Philippine share prices closed 0.39 percent lower on Wednesday as weakness in the US market deterred local investors, dealers said.

The composite index fell 9.77 points to 2,461.99 while the all-shares index slipped 0.25 percent to 1,578.77.

There were 42 gainers compared to 44 losers and 54 unchanged.

A total of 1.746 billion shares worth 3.412 billion pesos (70.5 million dollars) changed hands.

The local currency traded at 48.384 to the dollar.

"Following the two-day recovery in the market, appetite is slowing even with the expectation of (an interest) rate cut," Ron Rodrigo of DBP-Daiwa Securities told Dow Jones Newswires.

The central bank's monetary board is to announce whether it will lower rates on Thursday, two days after the government said June inflation had fallen to a 22-year low of 1.5 percent.

Rodrigo forecast that the index would consolidate in the 2,440-2,480 point range in the coming days.

Philippine Long Distance Telephone slipped 1.27 percent to 2,335 pesos while Ayala Corp. dropped 2.70 percent to 270 pesos.