MANILA, Philippines - Philippine share prices closed 1.02% lower Wednesday on profit taking, dealers said.

The composite index dropped 30.82 points to 2,981.25, while the all-shares index shed 0.83%, or 15.64 points, to 1,860.36.

A total of 2.35 billion shares worth P2.71 billion ($58.53 million) were traded.

Decliners swamped gainers, 84 to 28 while 58 issues closed unchanged.

The peso averaged 46.30 to the dollar.

The sell-off was triggered by concerns over President Gloria Arroyo's declaration of martial law in Maguindanao province last week, dealers said.

At the national level, its implication "isn't that strong, but hard to ignore," Claire Quiray, of Regina Capital Development, told Dow Jones Newswires. "It means anything can happen overnight."

Arroyo imposed martial law to quell what she said was a rebellion by a powerful Muslim clan accused of masterminding the political massacre of 57 people last month.

There have been fears in some quarters that the unpopular president may expand martial law to cover the entire country in a bid to hold on to power. Arroyo's 6-year term ends next year.

Philippine Long Distance Telephone Co. shed 1.1% to close at P2,590 while Energy Development Corp, was off 1.2% at P4.25.