KP Act Cheerleaders Left Red-Faced as Foreigners Head for the Exit

The Philippine Stock Exchange (PSE) index sank for a sixth straight day, down 45.96 points or 0.75% to 6,082.93, as foreigners dumped ₱921 million worth of shares.

While DICT Secretary Henry Aguda touts the KP Act as a welcome mat, foreign direct investment in the Philippines actually plunged 41.1% in Q1 to just $1.76 billion. (Photo: Department of Information and Communications Technology - DICT Facebook)

The culprit? The Konektadong Pinoy (KP) Act — still being trumpeted as an investment magnet by its backers — has instead become the lightning rod of investor scorn.

Telcos bore the brunt. PLDT slid another 1.58% to ₱1,211, while Globe, hammered down to a ₱1,502 low, managed to claw back to flat at ₱1,520 on bargain hunting. Traders weren’t buying the rosy narrative either.

One scoffed: “The KP Act’s supposed investment rise? A figment of imagination.” 

After all, the law spares new entrants from the “missionary routes” legacy telcos bled for, and scraps the vetting mechanism altogether.

The numbers make the mockery sharper. While DICT Secretary Henry Aguda touts the KP Act as a welcome mat, foreign direct investment in the Philippines actually plunged 41.1% in Q1 to just $1.76 billion.

Compare that with Thailand’s $12.9 billion (+97%), Indonesia’s $15 billion (+15.9%), even Cambodia’s $2.5 billion, and Laos’ $273 million. Yes — Cambodia and Laos are eating our lunch.

The foreign sell-off spared no titans. Ayala Corp. saw ₱105 million in net foreign selling, BDO Unibank ₱92 million, Metrobank ₱51 million, and Bank of the Philippine Islands ₱48 million.

Mining glittered (up 1.28% on gold fever) and SM Investments eked out a gain, but financials, industrials, services, and property all drowned in red ink.

And the market mood? One popular stock site summed it up with gallows humor: “General sentiment is that the PSE is on the road to the toilet.”

So much for bragging rights. The scoreboard reads: foreigners gone, FDIs down, telcos punished. KP Act boosters may keep clapping, but the applause rings hollow against the sound of foreign money marching out the door.