PHILIPPINE STOCKS closed lower for the third consecutive day on Tuesday as concerns over the economic impact of the Trump administration’s planned tariffs continued to dampen the market’s mood.
The benchmark Philippine Stock Exchange index (PSEi) fell by 0.52% or 32.17 points to finish at 6,159.85, while the broader all shares index dropped by 0.92% or 34.13 points to three,657.18.
“The local market declined for a 3rd straight day as US President Donald J. Trump warned of more tariffs to return, this time on cars, pharmaceuticals, lumber, and semiconductors. The US president also warned of tariffs against those buying oil from Venezuela,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “The mounting tariff threats are weighing on the worldwide economy’s outlook.”
“Philippine shares fell once more as uncertainty over Trump’s tariff plans weighed on sentiment,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.
Mr. Trump said on Monday automobile tariffs are coming soon at the same time as he indicated that not all of his threatened levies can be imposed on April 2 and a few countries may get breaks, a move Wall Street took as an indication of flexibility on a matter that has roiled markets for weeks, Reuters reported.
At the identical time, Mr. Trump opened one other front in a world trade war by slapping 25% secondary tariffs on any country that buys oil or gas from Venezuela, a directive that sent oil prices climbing.
US stocks ended Monday broadly higher on optimism that the tariffs set to be detailed next week is probably not as extensive as expected. The S&P 500 index gained nearly 1.8% to shut at its highest in greater than two weeks.
Asian stock bourses initially joined in on Tuesday morning but by mid-afternoon the relief rally looked set to fizzle out. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.35% lower ahead of the European open.
At home, majority of sectoral indices closed lower on Tuesday. Mining and oil declined by 3.02% or 285.32 points to 9,161.31; holding firms sank by 1.42% or 72.99 points to five,055.88; industrials dropped by 0.74% or 65.18 points to eight,727.29; and financials went down by 0.55% or 13.42 points to 2,388.83.
Meanwhile, property rose by 0.45% or 9.95 points to 2,209.66 and services increased by 0.02% or 0.43 points to 1,997.98.
“Universal Robina Corp. was the highest index gainer, climbing 1.93% to P76.45. Semirara Mining and Power Corp. was the important index laggard, falling 4.59% to P35.30,” Mr. Tantiangco said.
Value turnover went as much as P4.75 billion on Tuesday with 520.59 million shares exchanged from the P4.63 billion with 630.53 million issues traded on Monday.
Decliners outnumbered advancers, 107 versus 84, while 56 issues were unchanged.
Net foreign selling climbed to P604.51 million on Tuesday from P240.83 million on Monday. — Revin Mikhael D. Ochave with Reuters
