PHILIPPINE SHARES declined further on Thursday, with the main index retreating to the 6,200 level, due to lingering uncertainties caused by the United States’ shifting trade policies.
The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.66% or 41.93 points to close at 6,295.55, while the broader all shares index went down by 0.67% or 25.11 points to 3,723.14.
This was the PSEi’s worst close in more than three weeks or since it finished at 6,292.75 on June 24.
“The local market extended its decline as uncertainties over the US’ tariff policies continued to weigh on investors’ sentiment,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
“The peso’s further depreciation also contributed to the market’s drop,” he added.
US President Donald J. Trump said on Wednesday that a trade deal might soon be reached with India, which faces a 26% tariff. He added that letters will be soon sent to dozens of smaller countries, informing them that their goods would have a tariff rate of over 10%.
Meanwhile, the peso dropped for a fourth straight day on Thursday, closing at P57.29, down by 20.5 centavos from Wednesday’s close. This was a new three-week low for the local unit as this was its weakest close since it ended at P57.58 on June 23.
“Philippine shares continued to tumble as concerns surfaced from a rumor regarding a potential Federal Reserve leadership change,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message.
Mr. Trump said on Wednesday he is not planning to fire Federal Reserve Chair Jerome H. Powell, but he kept the door open to the possibility and renewed his criticism of the central bank chief for not lowering interest rates, Reuters reported.
A Bloomberg report earlier Wednesday saying that Mr. Trump was likely to fire Mr. Powell soon sparked a drop in stocks and the dollar, and a rise in Treasury yields.
All sectoral indices closed lower on Thursday. Mining and oil went down by 2.34% or 220.76 points to 9,175.61; holding firms retreated by 1.41% or 77.50 points to 5,417.43; industrials sank by 0.77% or 70.26 points to 9,023.2; financials fell by 0.72% or 15.99 points to 2,179.63; property dropped by 0.61% or 14.53 points to 2,364.26; and services decreased by 0.58% or 12.61 points to 2,137.14.
“Converge ICT Solutions, Inc. was the day’s index leader, climbing 4.32% to P18.84. Bloomberry Resorts Corp. remained as the worst index performer, dropping 5.62% to P4.03,” Mr. Tantiangco said.
Value turnover dropped to P7.33 billion on Thursday with 2.41 billion shares traded from the P20.78 billion with 3.43 billion shares exchanged on Wednesday.
Decliners outnumbered advancers, 112 versus 75, while 56 names were unchanged.
Net foreign selling declined to P24.38 million on Thursday from P3.47 billion on Wednesday. — Revin Mikhael D. Ochave with Reuters
