PHL shares extend losses for the third day on exit of foreign funds

Share prices on the Philippine Stock Exchange continued to extend losses for the third straight day due to the continued exit of foreign funds from the local stock market.

"The market closed lower today, down by three digits. This is due to the continuous exodus of foreign funds in the local equities," Manny Cruz, market strategist at Asiasec Equities Corp., told GMA News Online.

He noted that most investors are waiting for the release of US economic data "to see if there is still a need for QE [quantitative easing]."

"If US economy gets better, there's no need for QE, resulting in the outflow of funds in Asian markets. Participants on our market are mostly foreign funds," Cruz said.

In the last two weeks, markets worldwide have feared the US Federal Reserve's possible cut on its $80-billion bond-buying program within the year.

Reuters reported that Asian shares slipped to their lowest this year on Wednesday as uncertainty over when the U.S. Federal Reserve would begin scaling down its massive stimulus program fanned worries about funds flowing out of the region.

The bellwether PSEi plunged by 115.58 points or 1.73 percent to 6,557.89.

The broader all-shares index slid by 60.87 points or 1.47 percent to 4,067.24.

All sub-indices are in the negative territory led by property (-3.14 percent) and holding firms (-2.79 percent).

More than 1.7 billion shares valued at P10.36 billion changed hands.

Decliners led advancers 114 to 43 while 41 stocks were unchanged.

Cruz said among top index losers were heavy weights Metropolitan Bank & Trust Company with a 2.73-percent slide and SM Investment Corporation with a 3.05-percent decline. — BM, GMA News