Share prices plunged 3.2 percent yesterday after the Dow’s 200-point decline.

Foreign investors pulled out. Philippine Stock Exchange index (PSEi) retreated to 3,501.38, down 115.91 points.

The broader all shares index shed 61.25 points, a 2.76 percent decline to 2,154.53.

The Dow Jones Industrial average retreated overnight as latest economic data suggested that a US recession may not really be averted.

Losers edged gainers 101 losers to 16 gainers while 30 stocks were unchanged.

Trading however remained thin at P2.42 billion.

Oil prices is expected to hit higher for the month as the winter season takes to the extreme for its season this month, further putting a strain on the expected slowdown of the US economy.

Foreign funds yesterday posted a net foreign selling of P43 million.

Cliare Quiray, According Capital Equities, Inc. analyst said, "With the decline, investors will watch the US market more for direction."

"A lot of players will be playing based on volatility of individual stock because generall sentiment is bleak. It’s a good thing that our economy is somehow positive," said Quiray.

"The consensus is for the market to close with a 20 percent upside for 2008 but we think that a 10 percent growth is more possible as the market has not decoupled from the US market," said Banaag.

Philippine Long Distance Telephone Co. (PLDT) shed P90 to P3,060.

Ayala Corp. shed P35 to P510. Ayala Land, Inc., lost P0.25 to P14.

Manila Electric Co. shed P1.50 to P82. Megaworld Corp. lost P0.20 to P3.75.