Manila: Investors' concerns over the United States' tariff policies have resulted in a decline in both the Philippine Stock Exchange index (PSEi) and the Philippine peso on Tuesday.
According to Philippines News Agency, all indices in the local bourse ended in the red, with the main index down by 1 percent to 6,459.47 points, and the broader All Shares index decreased by 0.65 percent to 3,807.27 points. The Holding Firms sector led the declines among sectoral counters, dropping by 1.88 percent. It was followed by the Property sector, which fell by 1.71 percent; Mining and Oil, 0.97 percent; Services, 0.71 percent; Financials, 0.21 percent; and Industrial, 0.11 percent.
Trading volume reached 1.65 billion shares, amounting to PHP5.9 billion. There were more advancers than decliners, with 98 stocks gaining, 96 declining, and 56 remaining unchanged. Luis Limlingan, head of sales at Regina Capital Development Corporation, stated that Philippine shares weakened as investors responded to tariff threats from President Donald Trump. Many investors analyzed whether any measures would likely be softened through negotiations. Limlingan noted that investors are also paying attention to other tariff developments after Trump announced new levies on the EU and Mexico, with ongoing talks and key inflation data expected to reveal the economic impact.
The peso also ended weaker for the second consecutive day against the US dollar, closing at 56.73 from 56.63 on Monday. It began trading lower at 56.7 compared to the previous day's 56.6 start. The peso traded between 56.81 and 56.67, resulting in an average of 56.74. Trading volume reached USD1.28 billion.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort stated that aside from tariff worries, other factors affecting the day's currency trading included the strengthening of the US dollar, a decline in global oil prices, and a wait-and-see stance on the US inflation rate for June 2025 and the Federal Reserve's rate decision by the end of the month. Ricafort forecasts the peso's immediate two-week major support to be between 56.35 and 56.45.
