Jollibee declined as much as 8%, wiping out $850 million in market value in two days after the country's largest food service network operator said it was buying loss-making U.S.-based Coffee Bean & Tea Leaf.
The sharp losses underlined investors scepticism over Jollibee's foray into the U.S. market as hamburger chain Smashburger Master's performance is expected to weigh on the company's earnings, according to analysts.
Jollibee acquired Smashburger last year. Shares of Jollibee, which hit their lowest in nearly two years, have lost 12.1% in the past eight sessions.
The benchmark Philippine stock index <.PSI> slipped as much as 0.6% after a 1% drop in the previous session.
Among other Southeast Asian markets, Singapore <.STI> and Thailand firmed 0.3% and 0.2%, respectively, while Indonesia <.JKSE> edged higher.
This comes as soft economic data cemented case for monetary action by the ECB. The euro zone reported weaker-than-expected data for business activity in July, with manufacturing and foreign trade, considered the engine of recent economic growth, contracting heavily.
Adding to the sentiment is the upcoming U.S. Federal Reserve meeting, merely days after the ECB, where a quarter-point cut is widely expected.
In Indonesia, telecom and financial stocks were among the top gainers, with state-owned network services provider PT Telekomunikasi Indonesia (Persero) Tbk and lender Bank Rakyat Indonesia (Persero) Tbk PT rising 0.7% each.
The country's planning ministry on Wednesday revealed plans to lift its economic growth to an average of 6% annually during President Joko Widodo's second term in office by attracting more investment in the infrastructure sector.
(Reporting by Anushka Trivedi in Bengaluru; Editing by Subhranshu Sahu)
By Anushka Trivedi