Philippine Stock Index Plunges 2 Percent

The Philippine Stock Exchange Index fell 73.26 points, or 2.04 percent, to 3,598.96, its weakest finish since Oct. 1. The main index retreated 0.3 percent Thursday.

Traders said the market overlooked the latest 25 basis point cut in the central bank's policy rate because of the weakness in U.S. markets.

"The focus of attention now is the U.S.," said April Tan, research head at CitisecOnline.Com. "If the U.S. rebounds Friday, we'd probably see a recovery next week."

Blue chip Philippine Long Distance Telephone Co. slipped 1.1 percent to 3,015 pesos, and Metropolitan Bank & Trust Co. declined 4.5 percent to 53.50 pesos, as investors cashed in gains from previous sessions.

Mining companies also fell due to a fall in gold prices. Among them, Philex Mining Corp. slid 2 percent to 9.80 pesos, while Lepanto Consolidated Mining Co. plunged 5.7 percent to 0.50 peso.

Decliners outnumbered gainers 101 to 17, while 41 stocks were unchanged.