Stocks end lower on tariff threats, Fed minutes

Philippine shares closed lower on Thursday due to concerns over US President Donald J. Trump’s latest round of tariff threats and the Federal Reserve’s policy easing path.

The Philippine Stock Exchange index declined by 0.87% or 53.25 points to close at 6,066.63 on Thursday, while the broader all shares index inched down by 0.09% or 3.38 points to 3,671.62.

“The local market joined its regional peers in their decline as investors dealt with US President Donald Trump’s latest tariff threats on auto, semiconductor, and pharmaceutical imports,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “Investors also digested the Fed’s latest minutes of the meeting wherein they expressed concerns over the new US government’s trade and immigration policies and their effect on US inflation.”

“Philippines shares fell below 6,100 once again as the market took cues from a cautious Federal Reserve and President Trump’s threat of a 25% tariff on imported autos, semiconductors, and pharmaceuticals,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.

Global stocks treaded with caution on Thursday, with Asian shares feeling the heat as Mr. Trump’s tariff plans, geopolitical worries and a cautious stance from Federal Reserve policymakers hurt risk sentiment, Reuters reported.

Mr. Trump through the week has vowed tariffs on wide-ranging imports including pharmaceutical products, semiconductor chips and lumber. He intends to impose tariffs on autos as soon as April 2.

In Asia, Japan’s Nikkei slid 1.5% on the strong yen, while a blistering rally in Chinese technology shares took a breather. Hong Kong’s Hang Seng Index slipped 1.3%, having touched a four-month high earlier this week.

Mr. Trump’s initial policy proposals raised concern at the Fed about higher inflation, with firms telling the US central bank they generally expected to raise prices to pass along the cost of import tariffs, according to the Fed’s January meeting minutes released on Wednesday.

Traders are pricing in 39 basis points of cuts this year from the Fed with the next move fully priced in for September, LSEG data showed.

Back home, almost all sectoral indices ended lower on Thursday. Property declined by 2.56% or 57.83 points to 2,199.49; holding firms went down by 1.25% or 64.18 points to 5,062.47; industrials decreased by 0.78% or 69.48 points to 8,785.45; mining and oil shed 0.52% or 43.54 points to close at 8,272.33; and services retreated by 0.44% or 8.91 points to 1,974.56.

Meanwhile, financials rose by 0.57% or 13.07 points to 2,272.93.

Value turnover went up to PHP 5.72 billion on Thursday with 1.2 billion shares exchanged from the PHP 5.18 billion with 1.41 billion issues traded on Wednesday.

Decliners outnumbered advancers, 113 versus 74, while 58 names were unchanged.

Net foreign selling went up to PHP 601.30 million on Thursday from PHP 515.39 million on Wednesday. — R.M.D. Ochave with Reuters