PHL shares inch lower on renewed trade concerns
PHILIPPINE STOCKS went down on Monday as investors sold index stocks and amid renewed uncertainty caused by the Trump administration’s tariff threat versus the European Union (EU).
The bellwether Philippine Stock Exchange index (PSEi) fell by 0.36% or 23.16 points to close at 6,389.94, while the broader all shares index declined by 0.24% or 9.15 points to 3,737.64.
“The local market closed lower this Monday as investors exited from index heavyweights such as SM Investments Corp., SM Prime Holdings, Inc., and Manila Electric Co.,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“Concerns over global trade were also reignited following US President Donald J. Trump’s 50% tariff threat against the EU.”
Mr. Trump backed away from his threat to impose 50% tariffs on imports from the European Union next month, restoring a July 9 deadline to allow for talks between Washington and the 27-nation bloc to produce a deal, Reuters reported.
Mr. Trump had said on Friday said he was recommending a 50% tariff effective from June 1, expressing frustration that trade negotiations with the EU were not moving quickly enough. The threat roiled global financial markets and intensified a trade war that has been punctuated by frequent changes in tariff policies toward US trading partners and allies.
The US president’s softened stance two days later marked another temporary reprieve in his erratic trade policy, even if the latest whipsawing in decision making reminded policymakers and investors how quickly circumstances could change.
Mr. Trump has sought to upend the world economy with his trade policies, but after his announcement in April of tariffs on multiple countries sparked financial market upheaval, he dialed down his threats in favor of talks. Since then, Washington has inked a pact with Britain and has held discussions with China.
“The PSEi opened the week in the red as investors adopted a wait-and-see stance amid thin trading and a lack of fresh domestic catalysts,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message.
Value turnover dropped to P4.74 billion on Monday with 486.007 million shares traded from the P6.25 billion with 854.49 million issues exchanged on Friday.
Sectoral indices were mixed. Holding firms dropped by 0.83% or 45.71 points to 5,432.69; industrials went down by 0.67% or 60.63 points to 8,906.94; and property declined by 0.55% or 12.62 points to 2,245.5.
Meanwhile, mining and oil rose by 4.57% or 434.60 points to 9,932.28; services increased by 0.59% or 12.52 points to 2,120.41; and financials inched up by 0.01% or 0.35 point to 2,404.39.
Advancers outnumbered decliners, 102 versus 90, while 50 names were unchanged.
Net foreign selling stood at P639,182.05 on Monday versus the P126.82 million in net buying recorded on Friday. — R.M.D. Ochave with Reuters
