PHILIPPINE STOCKS inched lower on Tuesday as investors stayed on the sidelines following the inauguration of US President Donald J. Trump and his initial policy announcements.
The bellwether Philippine Stock Exchange index (PSEi) retreated by 0.15% or 9.68 points to close at 6,340.21, while the broader all shares index dropped by 0.07% or 2.62 points to 3,700.24.
“The local market edged lower this Tuesday as investors maintained a cautious stance while being observant of US President Trump’s first few days in the office,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “Investors are primarily concerned with the specifics of the US president’s planned protectionist foreign trade policies.”
“It was another quiet session for the Philippine markets following the inauguration of President Trump,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “US markets were closed on Monday for Martin Luther King Jr. Day, but futures trading saw gains as Mr. Trump began his second term as president. Optimism grew over anticipated pro-economy measures, particularly in banking and energy, while sentiment was supported by news that no new tariffs would be introduced on day one.”
Financial markets swayed and wobbled at the beginning of Mr. Trump’s second US presidency after he made a softer start on China than many had anticipated, but then signaled punitive tariffs on North American neighbors within hours, Reuters reported.
A wave of relief that swept across markets — as his speech and slew of executive orders imposed no new trade levies — was stopped in its tracks when Mr. Trump told reporters in the White House’s Oval Office that he was thinking about 25% tariffs on Mexico and Canada from Feb. 1.
Mr. Trump had vowed to immediately impose steep tariffs of 10% to 20% on global imports into the US and 60% on goods from China, but a memo he issued after taking office only directed agencies to research and investigate the US trade deficits.
At home, majority of sectoral indices closed lower on Tuesday. Mining and oil sank by 2.12% or 168.70 points to 7,762.26; services retreated by 0.82% or 17.25 points to 2,080.96; industrials went down by 0.56% or 50.85 points to 8,921.78; and financials declined by 0.4% or 8.91 points to 2,180.54.
Meanwhile, property rose by 0.88% or 20.54 points to 2,337.20 and holding firms increased by 0.34% or 18.16 points to 5,343.27.
“Converge ICT Solutions, Inc. was the day’s index leader, climbing 2.62% to P18.00. Universal Robina Corp. was at the bottom, falling 4.07% to P66.00,” Mr. Tantiangco said.
Value turnover increased to P3.87 billion on Tuesday with 1.01 billion shares traded from the P3.81 billion with 1.54 billion issues dealt on Monday.
Decliners outnumbered advancers, 104 versus 76, while 59 names were unchanged.
Net foreign selling climbed to P173.15 million on Tuesday from P107.92 million on Monday. — Revin Mikhael D. Ochave with Reuters
