Manila, May 20 -- Philippine shares dropped anew on Tuesday as investors opted to scale back their holdings, while the peso moved sideways.

The Philippine Stock Exchange index (PSEi) dropped by 1.85 percent to 6,335.33 while All Shares also fell by 1.20 percent to 3,720.57.

All Sectors closed in the red, led by Services which declined by 2.21 percent.

"Philippine shares extended their decline as investors grew more wary, opting to scale back their holdings after initial optimism waned following Moody's U.S. downgrade," Regina Capital Development Corp. head of sales Luis Limlingan said.

Decliners led advancers at 126 to 62, leaving 55 counters unchanged.

The peso, meanwhile, moved sideways, closing at 55.63 to a dollar from its 55.67 ...