PSEi extends losses amid Trump tariff worries

MANILA, Philippines —  Macroeconomic concerns both here and abroad dampened investor sentiment yesterday, driving share prices lower for the second straight day.

The benchmark Philippine Stock Exchange index plunged by 1.53 percent or 104.27 points to 6,702.59, its lowest close since Aug. 13’s 6,650.44.

The broader All Shares index likewise ended in the red, settling 0.96 percent or 36.46 points lower at 3,760.08.

On the local front, Philstocks Financial Inc. research manager Japhet Tantiangco cited the continued weakness of the peso against the   dollar as among the factors for the stock market’s decline.

Despite closing 29 centavos higher to 58.71 against the greenback yesterday, the local currency was still lingering near its record low of 59:$1.

Also exerting downward pressure on share prices was the “latest tariff threat from US president-elect Donald Trump against China, Canada and Mexico,” Tantiangco said.

Trump has vowed to implement a 25 percent tariff on all imported goods from Mexico and Canada and an additional 10 percent for those coming from China.

The planned tariff hike, according to Rizal Commercial Banking Corp. chief economist Michael Ricafort, aims to “clamp down on migrants and illegal drugs flowing across US borders.”

“Protectionist Trump policies could slow down global trade and the overall global economy,” Ricafort warned.

Trading remained tepid with a net value turnover of P3.82 billion, lower than the year-to-date average of P5.18 billion.

Foreigners were still net sellers, resulting in a net outflow of P539.05 million.