Share prices plunged by 3.02 percent yesterday, adding to Wednesday’s drop of 2.8 percent on continued volatility in global markets. The market has plunged 7.3 percent this week.

The peso together with the South Korean won were also the biggest losers in Asian currencies.

The peso tested 41 to the US dollar, hitting a low of 41.05 after opening low at 40.95 but closed at 40.87, down from Wednesday’s 40.78. The total value of transactions at the Philippine Dealing System reached $979 million.

Foreign funds shipped out P1.47 billion worth of investments in yesterday’s stock trade.

Again it was bloodbath at the market with 126 losers from yesterday’s 125.

Trading turnover reached 2.93 billion shares for P4.076 billion.

Traders must be nursing more severe stomach ulcers with the peso hitting an 8.5 year high last January 8 and 9 with combined trade of $2 billion only to plunge yesterday to 40.87. Total peso trade hit $979 million yesterday.

Analysts said panic is ruling the stock market with net foreign selling of P7.47 billion for the year. .

RCBC Securities, Inc. research head Chelseas Dipasupil said investors are still concerned that the whole impact of the subprime mess has yet to be felt in the US, and current developments hint that the problem cannot be contained and is spreading to other sectors, primarily the US’ consumer sector.

Philippine Long Distance Telephone Co. shed P65 to P2, 920.

Ayala Corp. shed P17.50 to P470.

SM Prime Holdings Inc. lost P0.70 to P9.10.

Manila Electric Co. was up P1.50 to P72.

Manila Water Co. Inc. shed P0.50 to P16.75.

San Miguel Corp. A and B shares both shed P3 to P53.50 and P54 respectively.

Asian currencies likewise were on jitters about a US recession.

The won fell as far as 948.1 per dollar, down almost 0.9 percent from late Asian trade on Wednesday and to its weakest level since August 2007.

"It’s still due to the US recession scare and various write-downs from big financial institutions like Citigroup, and foreign equity outflow for the past few days also contributed to peso correction," said a trader in Manila.

"But fundamentals supporting the peso remain intact," he said.

Traders expect the peso’s correction to be short-lived, pointing to the country’s healthy economic outlook and a sustained and heavy flow of remittances sent home by millions of Filipinos working abroad. (with reports from Reuters)