PSEi slips to 7,500 on new US tariffs
Credit to Author: JORDEENE B. LAGARE| Date: Thu, 03 Oct 2019 16:20:50 +0000
THE stock market again ended lower on Thursday, falling by almost 1 percent as trade tensions caused by the United States continue to grow.
The benchmark Philippine Stock Exchange (PSEi) dropped by 0.86 percent or 65.13 points to end at 7,545.55, while the wider All Shares declined by 0.68 percent or 31.67 points to close at 4,604.01.
“Philippine stocks continued their slide on Wednesday and posted one of the worst starts to a quarter, with data showing slower job creation adding to concerns about a weakening manufacturing sector as US President [Donald] Trump’s trade policies take their toll,” Regina Capital Development Corp. head of research and sales Luis Limlingan said.
“The PSEi came all the way down to 7,500, which is where it was at the beginning of the year and has proven to be the turning point in the last 10 months. The last time it came down to this level back in May, we saw a rally of at least 500 points,” AAA Equities Head of Research Christopher Mangun said.
The Trump administration announced on Wednesday that it would levy tariffs on $7.5 billion (P425.6 billion) worth of European imports starting on October 18.
Specifically, the US intends to slap a 10-percent tariff on aircraft manufactured in the continent and a 25-percent tariff on other products, including Irish and Scotch whiskies, cheeses and hand tools.
The move came after Washington secured the World Trade Organization’s (WTO) go-signal to impose tariffs as retaliation for illegal European Union subsidies to Airbus. The WTO ruling is the largest arbitration award in the intergovernmental organization’s history.
On Wall Street, the Dow Jones plunged by 1.86 percent; the S&P 500, 1.79 percent; and Nasdaq, 1.56 percent.
In Asia, Tokyo declined 2.01 percent and Shanghai slid 0.92 percent, but Hong Kong gained 0.26 percent. Shanghai and Seoul were closed for holidays.
In Manila, nearly all sectors ended in the red, with property taking the biggest hit at 2.19 percent and services gaining the most at 0.65 percent.
Volume turnover stood at 570.16 million amounting to P8.29 billion.
Losers outnumbered winners, 141-58, while 42 issues were unchanged.
WITH A REPORT FROM AFP