Trump's tariff policy drags down PH stocks

A bloodbath ensued in the Philippines’ stock market on Thursday as US President Donald Trump’s “Liberation Day” announcement of fresh rounds of tariff adjustments spooked investors across global markets.

The Philippine Stock Exchange index (PSEi), the local stock barometer, shed 101.95 points or 1.63% to close at 6,145.73.

The broader All Shares, on the other hand, lost 40.71 points or 1.10% to finish at 3,664.41.

“Philippine shares were sold down after holding steady the last couple of trading days as markets around the world reacted to President Trump’s tariff rollout,” Regina Capital Development Corp. managing director and head of sales Luis Limlingan said.

The Philippines was slapped with a reciprocal tariff rate of 17% by the US chief executive in response to Manila’s charge, averaging 34%, to American goods entering the country.

Limlingan said Trump’s latest trade policy has fueled market uncertainty.

Rizal Commercial Banking Corp. chief economist Michael Ricafort also attributed the stock market decline to Trump’s reciprocal tariff announcement as investors are concerned about “[some] listed companies that are export-oriented and more dependent on global trade could experience some slowdown in sales, earning and overall valuations.”

Philstocks research manager Japhet Tantiangco, likewise, said the local market was brought down “as investors dealt with the US’ latest tariff announcements including a 17% tariff against the Philippines.”

“Sentiment towards the global economy was dampened by the expected negative consequences of the US’ reciprocal tariffs,” Tantiangco said.

More than 1.35 billion shares valued at P4.62 billion, changed hands. Losers toppled gainers, 125 to 71, and 54 issues were unchanged.

Across sectoral indices, only the miners closed the day with gains, adding 0.39%.

“Despite recent declines, some investors see the sell-off as overdone. The market was fairing better early morning than most regions as investors looked towards the March inflation, which raised hopes for a BSP rate cut in April,” Limlingan said. — RSJ, GMA Integrated News