Market falls as investors wary of Trump policies

MANILA, Philippines — The local stock market fell yesterday as investors become cautious about the impact of a Trump redux in the White House, driving investors to sell shares and drag the local stock exchange in the red to end the week.

The bellwether Philippine Stock Exchange index (PSEi) yesterday fell by 1.3 percent, or 82.66 points, to close at 6,296.2, snapping a two-day gain following the inauguration of US President Donald Trump.

The broader All Shares index also lost 0.65 percent, or 24 points, to land at 3,681.34, as investors were taken aback by recent pronouncements made by Trump.

For his part, Regina Capital Development Corp. head of sales Luis Limlingan said investors became wary of Trump in light of his statements on increasing tariffs. Trump is keen on slapping a 10 percent tax on Chinese imports on Feb. 1, and is considering doing the same on goods from Europe and Mexico.

Trump is also demanding the Organization of Petroleum Exporting Countries to slash oil prices.

The 47th US president is also asking the US Federal Reserve to cut interest rates immediately even as officials are pushing for a pause to observe inflation developments.

“Philippine stocks succumbed to profit-taking ahead of the weekend as investors assessed recent pronouncements made by the (Trump) administration regarding tariffs, OPEC and interest rates,” Limlingan said.

All industries, except for mining and oil, took blows on the last day of the week.

The market saw P4.74 billion worth of shares change hands, with decliners beating the gainers, 95 to 86, while 59 issues were unchanged.