Investor jitters over the United States’ trade policy sent both the Philippine Stock Exchange index (PSEi) and the peso sliding on Tuesday, as fears of escalating tariff tensions weighed on market sentiment.
The benchmark PSEi shed 1 percent to close at 6,459.47, while the broader All Shares index dropped 0.65 percent to 3,807.27. All sectoral indices ended in the red, led by Holding Firms with a 1.88 percent decline. Property followed with a 1.71 percent dip, then Mining and Oil (0.97 percent), Services (0.71 percent), Financials (0.21 percent), and Industrials (0.11 percent).
Trading volume stood at 1.65 billion shares, valued at PHP5.9 billion. Market breadth was slightly positive, with 98 gainers edging out 96 losers, while 56 stocks were unchanged.
“Local shares weakened as investors digested the latest tariff threats from US President Donald Trump,” said Luis Limlingan, head of sales at Regina Capital Development Corporation. “There’s speculation that these moves could be softened through negotiations, but many are staying cautious.”
Limlingan added that investors are closely monitoring additional tariff developments, including those targeting the European Union and Mexico, along with upcoming inflation data that could offer clues on the broader economic impact.
The peso also lost ground for the second straight session, closing at 56.73 against the US dollar, down from Monday’s 56.63. It opened weaker at 56.70 and traded between 56.67 and 56.81, averaging 56.74. Total volume reached USD1.28 billion.
RCBC chief economist Michael Ricafort attributed the peso’s continued weakness to multiple factors: a strengthening dollar, falling global oil prices, investor caution ahead of June US inflation data, and the upcoming Federal Reserve interest rate decision.
Ricafort projects that the peso may find immediate support within the 56.35 to 56.45 range over the next two weeks.