PSEi Drops Amid U.S. Tariff Hike on Philippine Products

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The Philippine Stock Exchange index (PSEi) experienced a significant drop, closing 101.95 points lower at 6,145.73, following the U.S. announcement of increased tariffs on Philippine products. This 1.63 percent decline was primarily attributed to a knee-jerk reaction in the market, heavily impacting the Services sector, while the Miners benefitted from a surge in gold purchases as investors sought safe havens.

Trading volume was notably lower, with 1.35 billion shares exchanged, valued at ₱4.62 billion. The market saw more losers than gainers, with 125 shares declining compared to 71 advancing, and 54 remaining unchanged.

Regina Capital Development Corporation's Managing Director, Luis Limlingan, commented that Philippine shares were sold off after a period of stability in anticipation of U.S. President Trump's tariff measures. The White House indicated that the levies would be imposed immediately following a 4 p.m. ET announcement, though specific details were pending, contributing to global market uncertainty. Bloomberg reported that the administration was still finalising the tariff levels.

Philstocks Financial Research Manager Japhet Tantiangco noted that the local market's decline was a response to the U.S.'s latest tariff announcement, which included a 17 percent tariff on the Philippines. This move dampened investor sentiment concerning the global economy due to the anticipated negative repercussions of these reciprocal tariffs, reported Manila Bulletin.