Investors unload stocks on fears of global trade war

MANILA, Philippines — Share prices retreated yesterday as investors unloaded stocks amid fears of a global trade war following US President Donald Trump’s proposal to raise tariffs on imported steel and aluminum.

The benchmark Philippine Stock Exchange index shed 72.40 points, or 0.85 percent, to finish at 8,386.17 while the broader All Shares index went  down 21.45 points, or 0.42 percent, to settle at 5,043.89.

 Papa Securities deputy head of research Arabelle Maghirang said the PSEi fell as negative investor sentiment continued to weaken from a threat of a trade war.

Most sectoral indexes were down, taking the cue from the main counters.

Only the mining and oil and property gauges closed in positive territory.

Despite the trading session being a red day yesterday, market breadth was positive, 117 to 100 in favor of advancing stocks and 41 issues were left unchanged.

Nevertheless, total value turnover remained thin at P6.12 billion.

Persistent concerns on inflation also continue to hover above the local stock market, Maghirang said.

“The market expects inflation to pick up further in February, with a median forecast of 4.2 percent. A reading above the Bangko Sentral ng Pilipinas’ full-year target of 4.3 percent could spark another sell-off tomorrow with increased possibility of a rate hike soon,” Maghirang said.