Stocks fell on Tuesday after newly-elected US President Donald J. Trump threatened to impose tariffs on imports from Canada, Mexico and China and as the Philippine peso dragged investor sentiment.
The Philippine Stock Exchange index (PSEi) fell 0.63% or 43.14 points to 6,806.86 on Tuesday, while the broader stock index fell 0.39% or 15.20 points to close at 3,796.54.
“The PSEi corrected again after newly elected US President Trump said he would impose an additional 10% tariff on imported goods from China and 25% on imported products from Mexico and Canada,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said. (RCBC) via Viber.
The peso closed at P59 against the dollar Further weakened on Tuesday from its closing price of P58.99 on Monday, according to the Bankers Association of the Philippines.
“The PSEi fell amid persistent net foreign sales and below-average reading ahead of the release of the U.S. Personal Consumption Expenditures Index in October,” said Juan Paolo E. Colet, managing director of China Bank Capital Corp. via Viber.
This week, the third quarter US gross domestic product and the October personal consumption expenditure index will be released.
Most sector indices closed lower on Tuesday. Services fell by 2.68% to 2,086.81; mining and oil fell 0.86% to 7,606.12; real estate shed 0.41% to 2,572.63; industry and services fell by 0.3% to 9,438.69; and holdings lost 0.03% to 5,775.42.
Financials rose 0.53% to end at 2,290.37.
Value turnover fell to P4.6 billion on Tuesday with 587.79 million shares changing hands, a sharp decline from Monday’s P9.98 billion on 701.36 million shares traded.
Its net foreign sales position grew to P556.57 million on Tuesday from P308.74 million a day earlier.
There were more decliners than advancers (110 against 82), while 43 closed unchanged.
China Bank Capital’s Mr. Colet estimated the PSEi’s immediate support at 6,600 to 6,700 points and resistance at 7,000; while Mr. RCBC’s Ricafort put immediate support for the index at 6,715. — Ashley Erika O Jose