Manila Stocks Fall on Possible Marcos Return

Concern over the possible return from exile of deposed ruler Ferdinand E. Marcos triggered a four-day slide on Philippine stock exchanges that continued today with two major markets losing nearly 10% this week.

President Corazon Aquino, questioned about the drop, repeated her resolve to abide by any decision of a court considering Marcos’ petition to return to defend himself at a hearing concerning an alleged $5-million kickback scheme.

“I stand by my commitment respecting the decision of our courts,” said Aquino, who two days earlier vowed to personally ensure the safety of Marcos if he returns from his Hawaiian exile for the hearing.

That remark, along with comments by her chief adviser a day earlier and the filing of Marcos court papers Wednesday, set off a sharp retreat on the markets, analysts said.

“There is a psychological effect of the former strongman’s possible return,” said Bebet Dinoy, chief of research for the Manila Stock Exchange. “Most investors are afraid that it might cause trouble.”

The Manila Exchange composite index was off 9.5% for the week at today’s close at 741.81. The Makati Exchange was off 9.4% since Friday at 734.35.