PSEi sinks to 6,700 level on Trump’s tariff vow
THE MAIN INDEX sank to the 6,700 level on Wednesday as the market continued to react to US President-elect Donald J. Trump’s threat to slap tariffs on imports from Canada, China, and Mexico.
The benchmark Philippine Stock Exchange index (PSEi) fell by 1.53% or 104.27 points to close at 6,702.59 on Wednesday, while the broader all shares index dropped by 0.96% or 36.46 points to 3,760.08.
“The local market extended its decline as investors continued to digest the latest tariff threats from President-elect Donald Trump against China, Canada, and Mexico,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“Philippine shares closed back at the 6,700 level, falling more than 100 points, as investors concerns grew amid potential new tariffs suggested by President-elect Donald Trump,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.
Asian stocks fell on Wednesday and currencies were volatile as investors fretted over whether other countries could be targeted for tariffs under Mr. Trump, a day after he pledged new levies on Canada, Mexico, and China, Reuters reported.
Mr. Trump posted on his Truth Social platform early in Asia’s Tuesday that he would immediately put a 25% tariff on all products from Mexico and Canada upon taking office, and slap an additional 10% tariff on goods from China.
He said those levies would remain until the countries clamped down on issues such as illicit drugs and migrants crossing US borders.
“The peso’s weakness also weighed on the local bourse,” Mr. Tantiangco added.
On Tuesday, the peso slipped by a centavo to close at its record low of P59 per dollar, which it last hit on Nov. 21, as the greenback soared on safe-haven demand due to Mr. Trump’s statements.
The local unit on Wednesday rebounded by 29 centavos to end at P58.71 amid a softer dollar in anticipation of the release of key US inflation data overnight and the Thanksgiving holiday.
All sectoral indices closed lower on Wednesday. Holding firms dropped by 2.39% or 138.49 points to 5,636.93; property declined by 1.61% or 41.48 points to 2,531.15; services retreated by 1.23% or 25.73 points to 2,061.08; financials went down by 0.89% or 20.45 points to 2,269.92; mining and oil lost 0.64% or 48.91 points to end at 7,557.21; and industrials gave up 0.59% or 56.22 points to close at 9,382.47.
“Manila Electric Co. was the top index gainer, climbing 1.56% to P494. JG Summit Holdings, Inc. was the main index laggard, plunging 6.58% to P22.70,” Mr. Tantiangco said.
Value turnover decreased to P4.27 billion on Wednesday with 375.48 million shares traded from P4.6 billion with 587.79 million issues exchanged on Tuesday.
Decliners outnumbered advancers, 125 versus 60, while 49 names were unchanged.
Net foreign selling dropped to P539.05 million on Wednesday from P556.57 million on Tuesday. — R.M.D. Ochave with Reuters
