PSEi sinks to 5,800 level on global trade war fears
PHILIPPINE SHARES plummeted to the 5,800 level on Monday to log their lowest close since October 2022, joining the rout in global markets amid escalating trade war fears after the United States announced sweeping tariffs on its trading partners.
The bellwether Philippine Stock Exchange index (PSEi) sank by 4.29% or 261.34 points to 5,822.85, while the broader all shares index decreased by 4.02% or 146.67 points to 3,496.77.
This was the PSEi’s worst finish in over two-and-a-half years or since it closed at 5,783.15 on Oct. 3, 2022. This also marked its steepest one-day drop since June 2020.
Monday’s close put the main stock benchmark in bear market territory anew as this is 23.4% lower than the immediate high of 7,604.61 posted on Oct. 7 last year.
“The local market plummeted by the week’s start as global economic worries continued to weigh on sentiment amid trade war fears especially amongst major economies,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “This comes as China retaliated against the US’ trade policies with a 34% tariff rate on all of the latter’s products. The European Union is also planning on a unified countermeasure against the US’ tariffs.”
Foreigners also sold their shareholdings, which contributed to the market’s decline, he said. Net foreign selling surged to P3.24 billion on Monday from P738.51 million on Friday.
“Philippine shares were heavily sold as the escalation of the tariffs rattled markets across the globe. Many are now looking as to whether other countries will continue to retaliate in a back-and-forth increase,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Major stock indexes plunged in Asia on Monday as US President Donald J. Trump showed no sign of backing away from his sweeping tariff plans, Reuters reported.
The carnage came as Mr. Trump told reporters that investors would have to take their medicine and he would not do a deal with China until the US trade deficit was sorted out. Beijing declared the markets had spoken on their retaliation plans.
All sectoral indices closed in the red on Monday. Mining and oil tumbled by 8.74% or 820.50 points to 8,560.36; services sank by 4.97% or 95.05 points to 1,816.24; industrials plummeted by 4.8% or 413.20 points to 8,178.49; financials dropped by 4.59% or 109.84 points to 2,278.44; holding firms retreated by 3.78% or 190.16 points to 4,836.56; and property fell by 3.01% or 66.93 points to end the session at 2,153.13.
“All index stocks were in the negative territory with Jollibee Foods Corp. performing the worst, dropping 9.46% to P203,” Mr. Tantiangco said.
Value turnover rose to P13.23 billion on Monday with 1.36 billion issues exchanged from the P11.69 billion with 1.72 billion shares traded on Friday.
Decliners overwhelmed advancers, 201 versus 32, while 33 names were unchanged. — Revin Mikhael D. Ochave with Reuters
