Updated Oct 11, 2018, 5:34:14 PM
Metro Manila (CNN Philippines, October 11) — The Philippine Stock Exchange nosedived to a near two-year low Thursday, tracking regional shares spooked by trade wars and a possible U.S. interest rate hike.
The stock market plunged to 6,884.38, shedding 116 points (1.67 percent) from yesterday's close of 7,001.14, with all sub-indices in the red.
This is a fresh low for the stock market since December 29, 2016, when it closed at 6,840.
"Philippine shares felt the onslaught of regional markets, as equities were sold down on higher volumes," said Luis Limlingan of Regina Capital.
CNN International reported that Asian stocks may be heavily brought down by the U.S. stock market, as the Dow plunged by 3.2 percent Wednesday.
READ: Why the U.S. stock slump is hitting Asian markets hard
U.S. analysts pegged the drop in its stock market as a result of the Fed hiking interest rates and more trade war jitters.
According to the latest report from the Bangko Sentral ng Pilipinas, year-to-date foreign portfolio investments declined to $743 million in September, 42.7 percent lower than the $1.29 billion registered for the same period last year.
A majority of foreign portfolio investments, at around 85 percent, are investments registered with the Philippine Stock Exchange.
Meanwhile, the peso traded flat at ₱54.18 versus the greenback.