EM Asia’s Worst Stock Selloff May Extend as Foreigners Flee

  • Philippine stocks down 3.6% this quarter, most in EM Asia
  • Risk-reward less compelling for Philippine vs peers: BNP says
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A selloff that’s made Philippine stocks the worst across Asia’s emerging markets may have further room to go, as concerns about a hawkish central bank keep foreign investors on the sidelines.

The Philippine Stock Exchange Index has slid 3.6% so far this quarter, wiping out more than $11 billion in market value. A hawkish pivot by the central bank — as inflation creeps back up — is blunting the appeal of local equities for global money managers from BNP Paribas Asset Management to Franklin Templeton.