Local share prices fall 2.8 percent in early trading

MANILA (AFP) - Philippine share prices fell 2.8 percent in early trading Friday on a broad-based sell-off, following another major slump in markets worldwide, dealers said.

At 10:15 am (0215 GMT), the composite index was down 92.60 points to 3,292.60. The broader all-share index declined 62.55 to 2,116.62.

Jose Vistan, research director at AB Capital Securities, said: "What we are seeing now is the further unraveling of the US subprime (lending) problems. The move of BNP Paribas sent shivers down the spine of investors."

BNP Paribas, France's biggest bank, froze withdrawals from three of its funds that had invested in subprime mortgages in the United States.
"If the downtrend continues, it will wipe out the wealth the market has been accumulating. Consequently, spending will slow down as consumer confidence dips," Vistan warned.