Philippine Stocks Wipe Out $20 Billion in Value as Growth Slows

The threat of inflation possibly reheating added to the negative sentiment, prompting foreign investors to withdraw $131 million in August after pouring in $431 million in June and July. 

Photographer: Lisa Marie David/Bloomberg
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Philippine equities investors absorbed their worst monthly loss in almost a year with the benchmark index shedding 6.3% in August, marking the steepest decline among Southeast Asia’s benchmarks.

More than $20 billion in market value in the Philippine Stock Exchange evaporated in August as the economy — seen by economists as among Asia’s fastest growing —delivered below-estimate second-quarter growth after elevated interest rates and inflation dented consumer demand. The threat of inflation possibly reheating added to the negative sentiment, prompting foreign investors to withdraw $131 million in August after pouring in $431 million in June and July.