Trump speech dampens market

MANILA, Philippines - Share prices continued to decline yesterday as investors digest US President Donald Trump’s protectionist stance.

The benchmark Philippine Stock Exchange Index(PSEi) closed 0.57 percent, or 41.39 points, lower at 7,170.70, while the broader All Shares index fell 0.48 percent or 21.21 points down to 4,347.17.

IB Gimenez Securities Inc. research analyst Joylin Telagen said investors are still digesting the impact of Trump’s presidential address.

“Key things I think is protecting the American interests and boosting their economy to greater heights or really making their America great again,” Telagen said.

She said a stronger US economy would translate to a stronger dollar, which could weaken the peso.

“Weaker peso means weaker PSEi,” Telagan said. “And a stronger US economy, may translate to a faster rate hike, although Fed decision is data dependent.”

Regina Capital Development Corp. Business Development head Luis Limlingan said the Philippines was not the only market affected by President Trump’s speech. 

“Philippine stocks fell once again, this time along with US stocks, which closed with modest losses following several hawkish comments from several Fed Presidents and the Dow snapped its 12-day winning streak as the market watched President Donald Trump’s speech to a joint session of Congress,” Limlingan said.