Although the Philippines boasts one of Asia's oldest capital markets, it still remains heavily dependent on foreign portfolio investors, a reality confirmed by last year's market activity. The Philippine Stock Exchange Index (PSEi), alongside many of the world's equity markets, lost nearly 50% last year, mostly due to foreign sell off. However, despite the challenges endured by the PSEi in 2008, the Philippines defied most analysts by posting an annual GDP growth of 4.6%.