PHILIPPINE SHARES declined further on Monday, with the main index falling below the 6,000 line anew, as uncertainty over the Trump administration’s planned tariffs and the Bangko Sentral ng Pilipinas’ (BSP) policy easing path weighed on sentiment.
The Philippine Stock Exchange index (PSEi) dropped by 1.11% or 67.85 points to end at 5,993.48, while the broader all shares index went down by 0.49% or 18.12 points to close at 3,611.16.
“The local bourse extended its decline as investors continue to deal with the uncertainties on the global economy caused by the US’ recent tariff moves,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “Investors are also concerned with the pace of the Bangko Sentral ng Pilipinas’ policy easing following its pause in their latest meeting.”
“The PSEi declined for the second straight trading day on continued market disappointment after the pause in local policy rates versus expectations of a 25-basis-point (bp) cut priced in by the markets beforehand,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
US President Donald J. Trump on Friday kept alive his drumbeat of tariff threats, saying levies on automobiles would be coming as soon as April 2, the day after members of his cabinet are due to deliver reports to him outlining options for a range of import duties as he seeks to reshape global trade, Reuters reported.
Since his inauguration, he has imposed a 10% tariff on all imports from China, on top of existing levies; announced and then delayed for a month 25% tariffs on goods from Mexico and non-energy imports from Canada; set a March 12 start date for 25% tariffs on all imported steel and aluminum; and on Thursday directed his economics team to devise plans for reciprocal tariffs on every country that taxes US imports.
Meanwhile, the BSP on Thursday unexpectedly held benchmark interest rates steady as global uncertainties threaten the inflation and growth outlook.
The Monetary Board left the target reverse repurchase rate unchanged at 5.75%, marking its first pause following three consecutive 25-bp cuts since it began its easing cycle in August 2024.
Majority of sectoral indices dropped on Monday. Property retreated by 3.06% or 67.78 points to 2,145.45; holding firms went down by 2.53% or 130.29 points to 5,008.44; industrials declined by 0.21% or 18.74 points to 8,637.4; and financials fell by 0.14% or 3.28 points to 2,249.54. Meanwhile, mining and oil increased by 2.7% or 209.13 points to 7,953.83 and services rose by 0.51% or 10.10 points to 1,985.59.
Value turnover went up to P5.32 billion on Monday with 1.23 billion shares traded from the P5.25 billion with 541.30 million issues exchanged on Friday.
Decliners outnumbered advancers, 114 versus 74, while 61 names were unchanged.
Net foreign selling went up to P991.98 million on Monday from P578.62 million on Friday. — Revin Mikhael D. Ochave with Reuters
