PHILIPPINE SHARES dropped on Tuesday on profit taking in the absence of new trading drivers.
The Philippine Stock Exchange index (PSEi) sank by 1% or 65.57 points to close at 6,459.47, while the broader all shares index went down 0.65% or 25.09 points to 3,807.27.
“The local market pulled back as investors took profits amid the lack of fresh leads,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message. “With no new positive catalysts, global trade concerns amid the United States’ planned tariffs got the best of market sentiment.”
“Philippine shares weakened as investors responded to the tariff threats from President Donald J. Trump, as many analyzed whether any measures would likely be softened through negotiations,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “Investors have also been watching other tariff developments after Mr. Trump announced new levies on the European Union (EU) and Mexico, with talks ongoing and key inflation data expected to reveal the economic impact.”
Shares climbed worldwide on Tuesday as market participants entered a key week for US earnings, inflation data and trade talks in a relatively optimistic mood, Reuters reported.
Mr. Trump signaled he was open to discussions on tariffs after his weekend threat to impose 30% duties on the European Union and Mexico from Aug. 1. Japan is reportedly trying to schedule high-level talks with the US this Friday.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.8%, while Europe’s STOXX benchmark rose 0.2% and Nasdaq futures gained after Nvidia said it would resume sales of its H20 chips to China.
Investors are also waiting for US consumer price data for June due later on Tuesday and will monitor for any upward pressure on prices from tariffs.
Back home, all sectoral indices closed lower on Tuesday. Holding firms decreased by 1.87% or 107.78 points to 5,636.28; property went down by 1.7% or 42.32 points to 2,434.4; mining and oil retreated by 0.97% or 94.77 points to 9,651.96; services sank by 0.71% or 15.63 points to 2,186.81; financials declined by 0.2% or 4.66 points to 2,235.83; and industrials fell by 0.1% or 10 points to 9,234.49.
“Century Pacific Food, Inc. was the day’s best index performer, climbing 2.99% to P37.95. SM Prime Holdings, Inc. was the worst index performer, dropping 3.37% to P24.40,” Mr. Tantiangco said.
Value turnover decreased to P5.9 billion on Tuesday with 1.65 billion shares exchanged from the P6.5 billion with 2.3 billion shares traded on Monday.
Advancers edged out decliners, 98 versus 96, while 56 names were unchanged.
Net foreign selling reached P322.36 million on Tuesday, a turnaround from the P632.24 million in net buying on Monday. — Revin Mikhael D. Ochave with Reuters
