PHILIPPINE SHARES retreated for the third straight day on Monday following new tariff threats from US President Donald J. Trump.
The Philippine Stock Exchange index (PSEi) sank by 1.91% or 117.87 points to close at 6,037.12, while the broader all shares index dropped by 1.26% or 46.37 points to 3,617.27.
“The local market closed lower as US President Donald Trump gave more tariff threats, which if implemented could negatively affect the global economy. These include new steel and aluminum tariffs as well as reciprocal tariffs with other countries,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
Mr. Trump said on Sunday he will introduce new 25% tariffs on all steel and aluminum imports into the US, on top of existing metals duties, in another major escalation of his trade policy overhaul, Reuters reported.
Mr. Trump, speaking to reporters on Air Force One on his way to the NFL Super Bowl in New Orleans, said he will announce the new metals tariffs on Monday.
He also said he will announce reciprocal tariffs on Tuesday or Wednesday, to take effect almost immediately, applying them to all countries and matching the tariff rates levied by each country.
Mr. Trump during his first term imposed tariffs of 25% on steel and 10% on aluminum, but later granted several trading partners duty-free exemptions, including Canada, Mexico and Brazil. Mexico is a major supplier of aluminum scrap and aluminum alloy.
“Philippine shares kicked off the trading week in the red as investors await the latest MSCI rebalancing results, while others will be taking cues from fresh new economic data and possibly more developments on the geopolitical front,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort added that the PSEi’s decline came amid continued profit taking following the market’s steep rise last week.
Almost all sectoral indices closed lower on Monday. Property dropped by 2.42% or 57.40 points to 2,308.02; financials went down by 2.41% or 54.93 points to 2,215.41; services declined by 1.61% or 32.42 points to 1,976.2; holding firms retreated by 1.55% or 79.89 points to 5,049.43; and industrials decreased by 0.4% or 34.71 points to 8,568.16.
Mining and oil rose by 0.89% or 65.97 points to 7,430.20.
“Alliance Global Group, Inc. was the day’s index leader, rising 1.76% to P7.50. JG Summit Holdings, Inc. was the main index loser, plunging 6.30% to P15.16,” Mr. Tantiangco said.
Value turnover dropped to P5.69 billion on Monday with 716.60 million shares exchanged from the P6.06 billion with 449.92 million issues traded on Friday.
Decliners outnumbered advancers, 111 versus 78, while 44 names were unchanged.
Net foreign selling stood at P438.19 million, a reversal of the P403.73 million in net buying seen on Friday. — R.M.D. Ochave with Reuters