Losses in Philippine stocks are accelerating as foreigners keep pulling money from Asia’s most expensive market, amid speculation that the outbursts of President Rodrigo Duterte are hurting investor sentiment.
The Philippine Stock Exchange Index fell 1.3 per cent to 7,619.10 in its biggest decline in five weeks. The gauge has dropped 6 per cent from a 15-month high on 21 July, paring its gain this year to 9.6 per cent.
Foreign funds pulled $58m (£43m) from local equities on Wednesday, the most in almost a year, and have sold a net $333m in an 11-day run of outflows. The index is down 2.3 per cent this quarter, the only decliner among major Asian markets.
Duterte’s threat to call US President Barack Obama a “son of a whore” if he criticised an anti-drug campaign that’s left around 2,400 dead, and the subsequent cancellation of a meeting between the leaders, “didn’t sit well” with overseas investors, said Rafael Palma Gil, a portfolio manager at Rizal Commercial Banking Group in Manila.
That's right asshole.
If you insult our president there are repercussions.
Apparently Obama and Duterte did finally meet during yesterday during the Southeast Asian Nations (ASEAN) Summit:
According to a White House official, Mr Obama had a brief discussion with Mr Duterte before the Asean Gala Dinner in the leaders’ holding space. He said the exchange consisted of pleasantries between the two. However, the two leaders entered the dinner venue separately, were seated far apart and did not interact with each other during the meal that lasted an hour and 20 minutes.
The incident has soured relations between the two nations, at a time when their strong partnership is critical for regional stability. The Philippine government is concerned about Chinese activity in the South China Sea and, in the same week as the diplomatic row, released intelligence photos purporting to show Chinese coast guard vessels in the disputed Scarborough Shoal.
Yep, that is one smart president the Philippine people have there.
I wonder if they will enjoy their new Chinese overlords?