THE MAIN INDEX fell below the 6,000 mark anew on Tuesday as market sentiment was hit by US President Donald J. Trump’s move to hike tariffs on aluminum and steel imports.
The benchmark Philippine Stock Exchange index (PSEi) declined by 0.81% or 49.37 points to close at 5,987.75, while the broader all shares index retreated by 0.28% or 10.24 points to end at 3,607.03.
The PSEi last ended below the 6,000 line on Feb. 3, ending at 5,883.04. Tuesday’s close marks an 8.29% decline from its end-2024 finish of 6,528.79.
The bellwether index opened Tuesday’s session at 6,059.31, a tad higher than Monday’s finish of 6,037.12. However, that was already its intraday peak, with the PSEi finishing near the session’s low of 5,955.73.
“The local bourse failed to stay above the 6,000 psychological level as investors continued to assess US President Trump’s new tariffs while awaiting other catalysts,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message. “Moreover, investors were looking ahead to the Bangko Sentral ng Pilipinas’ (BSP) meeting this week.”
“Philippines shares continued to slide as Trump’s tariff announcement on steel and aluminum imports pressured sentiment, sending the PSEi down below the 6,000 mark. Moreover, investors were waiting on the sidelines as the latest MSCI rebalancing results will be out later,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Mr. Trump on Monday signed proclamations increasing the tariff on aluminum and steel imports to a uniform 25%, adding that he would announce reciprocal tariffs on other countries in the coming days.
Meanwhile, the BSP will hold its first policy meeting for the year on Feb. 13 (Thursday). A BusinessWorld poll showed that 19 out of 20 analysts expect the Monetary Board to cut rates by 25 basis points for a fourth straight review this week to bring the policy rate to 5.5%.
Almost all sectoral indices ended in the red on Tuesday. Property fell by 2.81% or 64.91 points to 2,243.11; services dropped by 2.23% or 44.1 points to 1,932.10; industrials went down by 0.92% or 79.37 points to 8,488.79; mining and oil declined by 0.05% or 4.29 points to 7,425.91; and holding firms inched down by 0.03% or 1.53 points to 5,047.90.
Meanwhile, financials rose by 1.25% or 27.89 points to 2,243.30.
“Among the index members, BDO Unibank, Inc. led the gainers, rising by 3.83%, while Emperador, Inc. experienced the steepest decline, plunging by 7.05%,” Ms. Alviar said.
Value turnover inched up to P5.82 billion on Tuesday with 478.95 million issues traded from the P5.69 billion with 716.60 million shares that changed hands on Monday.
Decliners outnumbered advancers, 106 versus 78, while 55 names were unchanged.
Net foreign selling increased to P655.18 million on Tuesday from P438.19 million on Monday. — R.M.D. Ochave
