Philippine shares drop as Trump tariffs shock markets

Philippine shares ended lower on Thursday to join other global markets that reeled following the Trump administration’s announcement of reciprocal tariffs on the US’ trading partners.

The Philippine Stock Exchange index (PSEi) fell by 1.63% or 101.95 points to close at 6,145.73, while the all shares index shed 1.09% or 40.71 points to end at 3,664.41.

“The local market was brought down this Thursday as investors dealt with the US’ latest tariff announcements, including a 17% tariff against the Philippines,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “Sentiment towards the global economy was dampened by the expected negative consequences of the US’ reciprocal tariffs.”

“Philippine shares were sold down after holding steady the last couple of trading days as markets around the world reacted to US President Donald J. Trump’s tariff rollout,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “The White House confirmed the levies would take effect immediately… though details remain unclear, fueling market uncertainty.”

World stock markets, oil prices tumbled, and investors dashed to the relative safety of bonds, gold, and the yen on Thursday, as Mr. Trump’s drastic US trade tariffs stirred widespread fears of a global recession, Reuters reported.

A new baseline 10% tariff on imported goods plus some eye-watering additional “reciprocal” tariffs on countries Mr. Trump said put high trade barriers on the US, left traders clearly rattled.

The sweeping tariffs will raise effective import taxes in the world’s largest economy to the highest levels in a century. If they do trigger recessions, central banks around the world are likely to slash interest rates which benefits bonds.

An annex to Mr. Trump’s executive order on the White House website indicates an adjusted tariff rate of 18% for the Philippines that will take effect on April 9.

Almost all sectoral indices closed lower on Thursday. Services retreated by 1.98% or 39.75 points to 1,964.65; holding firms went down by 1.76% or 90.35 points to 5,038.21; financials declined by 1.67% or 40.81 points to 2,401.56; industrials dropped by 1.13% or 99.01 points to 8,625.76; and property shed 0.92% or 20.95 points to end at 2,241.80.

Meanwhile, mining and oil climbed by 0.38% or 37.35 points to 9,660.28.

“Only two index members closed the day with gains, namely Manila Electric Co., up 1.48%, and Semirara Mining and Power Corp., up 0.56%. Puregold Price Club, Inc. was the index’s worst performer, falling 4.83% to P26.60,” Mr. Tantiangco said.

Value turnover dropped to PHP 4.62 billion on Thursday with 1.35 billion shares exchanged from the PHP 6.06 billion with 1.31 billion issues traded on Wednesday.

Decliners outnumbered gainers, 125 versus 71, while 54 names were unchanged.

Net foreign selling went down to PHP 101.1 million on Thursday from PHP 259.87 million on Wednesday. — Revin Mikhael D. Ochave with Reuters